The allowance is an additional deduction you can take after any section 179 deduction and before you figure regular depreciation under MACRS for the year you place the property in service...."

thanks @dave savage….I figured as much but thought it give it a shot to see if anyone might have some feed back since everyone on BP seems to be so forthcoming all the time.

I see you're a realtor, so you can ignore my paragraph about value, I'm sure you've figured that part out.

@Adam Moehn Great question.Your deal looks fine except for 2 figures in my opinion.1.

I keep hearing this thing about reaching out and networking, figured I'd take a shot ;) I'm in LA and a drive/flight to Phoenix is pretty doable if I'm going to be in the presence of people who have experience and are willing to help a new longer term rental holding investor.

Unless it's a newer building without much deferred maintenance I would highly suggest you increase this figure.

You have to be able to figure out the value of the property.

I know that his end goal is to be buy and hold, I just want to figure out how the best way of getting there will be.

I know this is gonna be harsh but what idiot would put a 6 figure asset in their own name?

They figure they'll make it up on the next job, but the next job becomes the next and so on.