@Avery MooreHi Avery,Here’s what we did…We went to a local bank and did a DSCR loan with a cash out component as well that combined five older mortgages that at the time were at higher interest rates than what the DSCR lender was charging.  

And you're right that since the property wasn’t placed in service until August 1, most of those pre-rental expenses (like renovations and improvements) are considered capital improvements and get added to your basis.But under Trump's new tax bill, certain components of your renovation (like appliances, light fixtures, and even some flooring or cabinetry) may qualify for bonus depreciation if they fall into a 5-, 7-, or 15-year property category under IRS rules. 

Your maintenance/cap ex is far too low if going sustained costs (full lifetime of all components).  

This is just the normal operating costs, never mind the big things that come up occasionally with capex like when you have to replace a major component (furnace, water heater, sewer line, driveway, steps, deck, windows, roof, doors, siding, landscaping, etc,) and it costs $10-20k.

I also need to become better versed in the legal component of real estate as well.  

Agree, but there is one more component that I personally factor in and that is the weather.

The building components and systems that make up the building are the ingredients. 

Finally, roof age is one of the most crucial components to insurability of a home.

I am parts of groups where people invested in coffee, oil and gas, ATM machines etc. because they were chasing the depreciation components (especially back when there was 100% depreciation), they got all that depreciation but in some instances the funds took a turn for the worse and not only did they lose their investment they also owed money due back to the IRS for depreciation recapture where they took too much depreciation.

This meanse that if you buy real estate this year (or had bought real estate after January 19, 2025), you can fully expense eligible components like appliances, flooring, cabinets, and land improvements...in year one.You can't depreciate the entire purchase price of the property, though.