Then once you burn through your deposit you start taking draws but you wanna get so deep into your project with your deposit that it will unlock most of the budget which will allow you to finish.Problem is, whether it is a fix n flip or ground up, ppl try to piece mail it together. 

I've been investing through different cycles and I’m seeing a lot of newer investors running into this same frustration.Here are a few approaches that may help unlock better opportunities:✅ Look for motivated sellers, not just listed inventory.

Additionally, any strategies around accelerated depreciation will likely just result in suspended passive losses carried forward to future years (ie can’t be used against W2), since you probably won’t qualify for REPS.Also, remember that any accelerated depreciation plans are just a deferral of tax, not an elimination.Technical stuff aside did you get into real estate to be active in it?

They may also utilize your space to create additional bedrooms.

Or would have been if you were single.DepreciationReal estate investors get to subtract an additional deduction: depreciation of their properties.

We're witnessing the simultaneous breakdown of traditional financing mechanisms (extend-and-pretend ending), market pricing discovery (DSCR giving way to debt yield), and sector dynamics (office declining, industrial rising) while new players fill the void with different approaches to risk and control.The Fed's September decision becomes crucial not just for monetary policy but as a potential catalyst for unlocking the frozen $23 billion in CMBS maturities and broader market liquidity.

They carry forward indefinitely and can be used later in two situations:When you have passive income from other rentals, syndications, or fundsWhen you sell one of the properties and recognize a gainIf your goal is to actually unlock those write-offs now, here are a few ideas to consider.Look into short-term rentals.If you convert one property into a short-term rental and materially participate, it can be treated as non-passive.

If rates drop to 6.5% or lower, it could fire up the fall market as any downward adjustment would unlock affordability for many.The real issue?

Instead, you can unlock 100% bonus depreciation on assets with a useful life under 20 years.This includes:•Furniture & appliances•Flooring•Window coverings•Landscaping & outdoor lighting•Fencing, driveways, and patiosThese can often make up 20–35% of the purchase price — all potentially depreciated in Year 1 with a cost segregation study.Cost Segregation Friendly Features = Faster Write-OffsCertain property features allow you to break down the building into faster-depreciating components:Look for:•High-end finishes (luxury fixtures, lighting, smart tech)•Pools, patios, outdoor kitchens•Detached garages, ADUs•Upgraded appliances and built-insThe more non-structural components a property has, the more value a cost segregation study can carve out into 5-, 7-, and 15-year buckets.Newer or Recently Renovated Homes = Richer DepreciationNew builds or heavily renovated homes often pack in:•New HVAC systems•High-efficiency appliances•Premium flooring, tile, and cabinetryNot only are these attractive to guests — they’re also gold for depreciation, since they’re assigned shorter useful lives and can be depreciated more quickly.Higher Purchase Price = Bigger DeductionsIt sounds obvious, but worth repeating: the more expensive the property, the more there is to depreciate.A $1M STR might yield $200K–$300K+ in bonus depreciation in Year 1.

In my years as an investment coach, I've discovered that unlocking their potential hinges on one thing: education, especially when it comes to multifamily investments.