This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

Airbnb will be easier to process the guest--- they just book and pay.

Now the mold remediation is about $11K.

Is there a demand for housing in the area?

My business partners and I are looking to branch out the investing business to include short term rental management via co hosting.

Ask one of the charities that’s benefitting from your generosity?

If it is a larger house and the renter group is families consider that moving in the school year is less common.

Right now the LLC is the taxpayer for the property.   

Here is a list of what adding ADUs in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Meetups are the best confidence supplement to books and podcasts in the world.