Short-term flips may make the recapture hit outweigh the benefit.Recapture Is Real:Depreciation claimed isn’t free—when you sell, the IRS recaptures depreciation at 25% (for residential property).So, cost segregation is a timing strategy, not a permanent tax break.Professional Study Required:The IRS expects a detailed engineering-based allocation to separate land, building, and personal property components; this protects against audits.conclusion: Cost segregation improves short-term cash flow but reduces your basis for sale—plan around holding period and recapture to maximize value.

What matters more is certainty of execution, speed to close, and how well the loan structure aligns with the exit strategy.For investors, priorities usually include reliable capital, flexible underwriting, a clear draw process, Delays or misaligned terms often cost more than a slightly higher interest rate.

You ultimately want to align your investment strategies with your future goals and financial tolerance to these potential circumstances.

@Don Konipol Thank you for this post—I really appreciate your perspective.It aligns with my current assessment of the market, so I find it very encouraging to hear this from you, and it reinforces my opinion.I also appreciate your comment about recognized designations such as CCIM.

Good tenants who want to stay are worth thinking carefully about.I’m Lucas with Howzer Property Management in MA, and we see this come up a lot.One-year lease — prosMore flexibility to adjust rent annually as costs changeEasier to pivot if your plans for the property changeKeeps leases aligned with market cyclesOne-year lease — consSlightly higher turnover risk, even with good tenantsMore frequent renewals and paperworkTwo-year lease — prosStability and predictability (especially if they’re strong tenants)Lower turnover risk and vacancy costsLess administrative workTwo-year lease — consRent can lag market if costs jump (taxes, insurance, utilities)Harder to correct if the tenant situation changesLess flexibility if your plans changeWhat we usually recommendIf you’re going to do a two-year lease, protect yourself:Build in a rent increase for year twoOr include a mid-term rent adjustment tied to operating costsMake sure maintenance responsibilities are crystal clearIn Massachusetts especially, expenses rarely stay flat for two years.For owners who value flexibility, a one-year lease with a strong renewal history often ends up being the sweet spot and what we recommend.

Each upgrade was aligned with local buyer expectations to maximize resale value.What was the outcome?

@Matthew BonaskiAbsolutely, and that perspective aligns perfectly with how real expertise is developed in our industry.

As for price point and expectations, I think you've aligned both well. 

As with any deal, if you’re leaning toward townhomes, just make sure the acquisition is strategic and aligns with your long-term goals.

Don’t completely ignore retail transactions.Even if investing is your goal, helping a few buyers/sellers builds cash flow and relationships — and many of my best investment opportunities came from people in my sphere.Since you’re working full time (I did as well when I started), I’d recommend:Find a brokerage with low pressure on production.Join or align with a small investor-minded team.Spend your extra time underwriting deals and networking with actual operators.If you want to share what market you’re in, I’m happy to give more specific guidance.