It may also be useful to consult with an expert to ensure the terms align with both parties' goals.

They aren't experts in the alignment of how various real estate strategies can align with personal financial goals (i.e.

It could give you insights into how the deal is looking versus what is being reported to you (hopefully this aligns pretty closely).  

Yes, it appears we are aligned on the 11-month lease concept.

Bigger budget things like heated pools or hot tubs are always great if the costs align with your property.

When it comes to acquiring lucrative coastal luxury vacation rentals on the Oregon Coast the most challenging components can be permitting and timing. 

Make sure you’re on the same page with your partner and that your goals are aligned.

Title insurance, settlement fees, and recording fees can vary, so you could request updated estimates as you get closer to the closing date.If you’re expecting to stay under $5,000 out of pocket, double-check the loan estimate to ensure this aligns with your DPA and the amount you're being asked to bring to the table at closing.

Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

You might also consider using cost segregation to accelerate depreciation on certain components of the property, especially given the significant rehab costs.