Hello, bigger pockets pros, We have a rental property in Columbus and we are looking for a contractor who can replace the existing basement window with a standard sized window. Is anyone you recommend ? Thank you so m...

Thanks,~PaulClick on image to enlarge.

Hopefully in just a few years the cash flow can help fund your Primary rehab and enlargement.

When it comes to real estate, here's a general list of eligible assets and their depreciable lifespans that you should know: Residential Rental Property = 27.5 yearsThis includes any building or structure where 80% or more of its gross rental income is from residential units.That means:- Apartment buildings- Single-family rental homes- Duplexes, triplexes, and quadplexes- Mobile homes (used for residential rental)- Any kind of residential lodging facility where the primary purpose is long-term rentalCommercial Property = 39 yearsThis includes non-residential properties like:-Office buildings-Retail stores and shopping centers-Warehouses-Industrial complexes-Hotels and motels that do not qualify as residential rental propertyLand Improvements = 15 yearsThese include sidewalks, roads, fencing, some landscaping, and parking lots that are separate from the building.Personal Property = 5 or 7 yearsPersonal property used in a rental activity usually has a 5 or 7-year life.This includes most furniture, appliances, carpeting and various machinery.Qualified Improvement Property (QIP) = 15 yearsGenerally, this includes any improvements made to the interior of a non-residential building after the building was placed in service, excluding elevators, enlargements, and the internal structural framework.Computers and Related Peripheral Equipment = 5 yearsVehicles = 5 yearsNote that the land itself is not depreciable.

How has your overall portfolio been enlarged? 

See the illustration below (click to enlarge).Goals“If you don’t know where you are going, you might wind up someplace else.”

I created the following decision tree diagram to illustrate the decision process (click to enlarge).The above decision process is based on the property’s performance record, with the goal of achieving financial freedom in mind.Financial freedom is not just replacing your current income.

However, there is a straightforward process that does not require any secrets or gurus, which is illustrated below (click to enlarge).I will summarize each step below.GoalsSetting written goals is the foundation of any successful venture.

(Click to enlarge.)I've created the following decision tree to help determine the best option based on your situation.

You may need to click the images to enlarge them.Summary of the Year 1 cash flow: The details: $82k purchase price, 25% down payment, 25% reserve for maintenance, vacancy, and management.