The incentive is to use bonus depreciation and material participation to save money on our taxes.  

It's not foolproof but it should help limit your exposure to something that you cannot see. 

I was certain this was the right play so I could take advantage of bonus depreciation, which is going to begin sunsetting in 2023.But now I am feeling cold feet. 

Has there been any recent exposure of insulation on the exterior wall?

The unfortunate thing here is that investment properties foreclose at a higher rate than primary homes so many banks just don't want the exposure to this.

Both units have W/D hookups, and the garage apartment has bonus space downstairs that could be a 3rd bedroom or even could serve as a separate rentable unit.

I'll long-term rent it out and eat the negative cash flow, and do cost segregation and bonus depreciation.

Now retirement home.3brm, 3bth, 1-bonus room, den, formal dining room, living room, pantry, washer/dryer room, no garageWhat made you interested in investing in this type of deal?

I've heard that termites don't eat charred wood (potential bonus)?

The house would make the perfect house hack because it has 3 separate entrances, 4 bedrooms, a bonus room (which can be a bedroom), and is in a quiet neighborhood with ample street parking.