I typically back into it based on what’s actually being collected and what’s realistic post-takeover, rather than forcing a target percentage of EGI.On expenses, for long-term holds in B/C-class Southeast markets, I’m usually somewhere in the high 30s to low 40s as a starting point, then adjust based on age, systems, utilities, and management intensity.

This can lead to missed deductions or credits and overpayment of taxes.A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

I’ve utilized seller financing on both ends - the best of the “deals” were the ones where the seller took back 70-80% of the purchase price in a 0 percent interest loan - ALL my monthly payments were a reduction in principal.  

@Mike Smith That's great to utilize a 1031 exchange and take advantage of the tax savings.

@Bryan SimmonsHey Bryan,Great plan and yes that is a house hack, tax wise it is a mixed use property so one part is personal and one part is a rentalIf you are remote pick the market and run the numbers, but remember the tax benefits only apply to the rental portion so you want strong income and clean trackingStarting with a 2 to 4 unit is great because you can use low down payment financing, and once you rent units out you can deduct legit rental expenses like repairs, insurance, utilities allocated to the rental side, and rental portion mortgage interestBig tax win is depreciation on the rental portion, just make sure you separate personal vs rental expenses because only the rental share is deductibleIf you move out later and convert it to a full rental your deductions expand, but depreciation lowers basis and can trigger recapture when you sell unless you 1031Also watch passive loss limits since high W2 income can restrict how much loss you can use each year

I've purchased a number of homes with utilities off.

Working with the utility company and with it being in a historic district resulted in this taking almost 5 months.

There is always money out there you can utilize if the deals make sense.

Investors who want to access different markets and scale love to utilize this strategy.

I saw something regarding the utility cost increase that can be from these centers going in.