One of the main advantages is that you can usually pick them up at a really solid cost basis.

@Juan Carlos Flores Garcia DM us to schedule a 30 minute chat to discuss all this, including the basis for the great warning from @Stuart Udis.

However, you may want to see if the item can be a start-up cost or added to basis of a future deal you get into.

You think you're making more but you must subtract those sunk fund costs from your net revenue.And keep a sharp eye out on any cost to you that is outside the normal income expense sheets. 

and each investor must track their capital basis and similar truisms.

Safe and normal or ultra risky and dangerous?   

When we're gone, the next generation can get a step up cost basis and also eliminate all the depreciation recapture. 

Spending money on improvements increases your cost basis, which lowers your taxable gain, but it doesn’t change the exchange rules.

Basically, there's no free lunch when it comes to taxes.Depreciating property lowers your tax basis.

This changes the game.Example: Studio Unit (fully furnished, permits, foundation included)1) Market Rate, No IncentiveBuild cost: $200–225K | Market rents today: $1,500–$2,000/mo | NOI: $12.6K–16.8K/yr | Yield: ~6–8% | Payback: 12–18 yrsSolid, but long payback and moderate yield.2) With Charlotte’s $80K Forgivable IncentiveEffective basis: $120–145K | Program rent cap (8 yrs): ~$1,100/mo → NOI ≈ $9.2K/yr | Yield during affordability: 6–8% | Forgiveness adds ~$10K/yr “earned income” | Payback to recover gross cost: ~11–13 yrsThe subsidy de-risks the deal—guaranteed inflows cover build cost faster.3) After 8 Years (rent cap lifts, market rents w/ 3% compounding)$1,500 today → $1,900 | $1,750 today → $2,217 | $2,000 today → $2,534Year-9 ROE after incentive: $200K build / $120K net basis → 13–18% | $225K build / $145K net basis → 11–15%You exit affordability with a permanently lower cost basis and market-rate income.