The “Silent Deal Killer” Most New Investors Overlook

[William Thompson]

Hey BP Community,

I’m William Thompson, a CPA and Tax Strategist working with real estate investors across the U.S. Over the years, I’ve noticed that one thing quietly eats away at returns for both new and seasoned investors—tax treatment and deal structure.

Too often I see:

• Great BRRRR deals that look strong on paper, but after depreciation recapture or a poorly timed refinance, the returns shrink dramatically.
• Investors selling a property without considering a 1031 exchange—losing 20–30% of equity to taxes.
• Partnerships where cash flow looks fine… until one partner’s tax situation is completely different from the other’s.

Here’s my question to you all:
1. What’s been the biggest surprise tax impact you’ve faced on a deal?
2. If you’re new, what’s the one thing you wish you understood better about the tax side before jumping in?

I’ll share some of the most common pitfalls I see (and a few strategies that help) as the discussion builds.

Looking forward to hearing your experiences and learning from this community.

— William Thompson
Real Estate CPA & Tax Strategist