We have many of our process documentation nearly complete, but not hand off with no guidance complete.BTW I allocate what most would consider too high maintenance/cap ex but I believe is fairly accurate (ask people how they derived their maintenance/cap ex allocation and you will hear some crazy responses from I used the default percent in my rental calculator, I use actuals but have only had rentals some timespan that is far short of large cap ex item lifespans, to I did not allocate anything because I have reserves (how do they project a cash flow?)

When you flesh out your numbers, your target will be the amounts allocated to the investment side of the duplex.

What’s happening sounds more like a HUD and Section 8 program mismanagement issue than a policy change from the top.Local housing authorities depend on the annual HUD budget allocations, and when those get delayed, reduced, or rebalanced, they sometimes have to freeze rent increases just to make their existing contracts pencil out.

In a landscape of market volatility and rising interest rates, savvy investors are allocating capital to assets that offer stability and resilience.

The financial viability of the strategy is maximized when a Cost Segregation Study can allocate a high percentage of the purchase price to short-life assets (like furniture and fixtures), leveraging the current 100% Bonus Depreciation to create a substantial "paper loss" in the first year.To use the 100% Bonus Depreciation against your 2025 W2 income, the STR and its eligible assets must be fully "placed in service" by December 31, 2025.

My cap ex has been calculated by replacement costs versus expected life expectancy of all property components.I allocate pm even if self managing because my time is very valuable and I deserve to be well compensated.Using my underwriting, this property is very large cash flow negative.  

The opportunity here is that you can allocate the proceeds however you want in your purchases to give yourself the most optimal debt/equity ratios.2.

Most investors focus on “price,” but smart investors focus on structure.A $10,000 discount looks nice on paper—but the impact on your monthly cash flow, debt service coverage ratio (DSCR), and approval odds can be underwhelming compared to the same amount in seller credits.Here’s why:A $10k price reduction might save you around $60 per month on a standard 30-year fixed loan.A $10k seller credit, used to buy down your rate, could reduce your payment by $140 per month or more.That’s more than double the savings—and it improves your property’s DSCR, which can be the difference between getting approved or not.In a world where every fraction of a percent matters, understanding how to allocate negotiation dollars is a hidden superpower.

What does your financial plan asset allocation say?

And even if you do know that, how would you—without professional tools—determine how much of the property’s value should be allocated to the building?