I believe with both products you will receive a K-1 that allocates you your proportionate share of expenses, including depreciation or amortization. 

Work with your CPA to allocate more value to land and structure.

It's crucial to allocate sufficient funds and consider the impact on vacancy rates.

But you can often use the county’s land vs. improvement split as a reasonable method for allocating that purchase price between land (non-depreciable) and building (depreciable).So for example, if the county shows the value breakdown as $100K land and $250K improvements (on a total value of $350K), you can apply that same ratio to your actual purchase price.

A lot of people either use DIY software (like KBKG’s tool) or take a rule-of-thumb allocation and have their CPA review it.

Allocate equity based on contributions: you provide the $235K HELOC and management, while your former boss contributes renovation expertise and labor.

The right team matters: use a real estate attorney who drafts TICs regularly, a tax advisor who understands depreciation allocation and exchange rules, and a lender that is explicitly comfortable with TIC structures.If you share the property type, market, rough deal size, number of co-owners, and whether a 1031 is involved, I’m happy to sanity-check the structure.

If you are below market rent and a tenant vacates it could be faster.Mostly I ask these questions in hopes of educating other newbie RE investors.Because the expensive cap ex items last many years, I fear your expenses likely do not allocate properly for these costs and your cash flow is worse than you realize.I believe the current market is challenging.  

Prorating personal vs. rental use: If you moved in later in the year, you’d need to prorate deductions between personal and rental use.Other tax considerations: Beyond cost segregation, there are other strategies you could explore with a CPA, such as deducting expenses like property management, maintenance, and mortgage interest, or planning for future rental vs. personal use conversions to maximize tax benefits.Because this can become nuanced, it’s best to sit down with a CPA experienced in real estate rentals and cost segregation to ensure everything is allocated correctly.

You will also want to make sure you allocate between rental and personal use.