It’s definitely a balancing act — owners want to protect their investment, but holding too tightly to outdated assumptions (like 2021 rent levels or tenant demand) can end up costing more in the long run.I’ve found the best approach is setting clear expectations upfront with a manager: define thresholds where the manager can act without approval (like minor repairs or small rent adjustments) and bigger decisions that require owner sign-off.

Feels like it is important to have the experience and know how to allocate the different building components $ value between things like concrete, landscaping, etc.

Our agent is sending us lots of different stuff and it's becoming apparent that we need to really define our criteria.

In US tax law, the depreciable lifespan of an asset is defined by its MACRS classification which stands for “Modified Accelerated Cost Recovery System.”Under MACRS, depreciable assets are assigned to different classes, with each class having a specific recovery period.

Since tenants were living there under a valid lease, it may be possible to treat that period as rental use.Depreciation and cost segregation: A cost segregation study could apply to the property for the rental portion, allowing accelerated depreciation on eligible components.

That way, profits and responsibilities are clearly defined without making your friend a co-owner.Profit-Sharing Agreement: One person owns the property, but you can set up a contract where your friend gets a percentage of STR profits.

The tax advantages of buying/holding gas stations are pretty great.Many of the components of gas stations including pumps, tanks, external parking areas, and other equipment are classified as either 5 or 15 year property so you can bonus depreciate a lot of it (minus the land value) and get significant deductions in year 1.With the current bonus depreciation rate at 100%, a $1 million gas station acquisition could still lead to $200K+ in year 1 deductions depending on the specifics of your deal.

@William Thompson This bill is truly a game-changer, and I’ve got a few thoughts on it:The ability to fully expense components in cost segregation studies (instead of just 40%) means more predictable year-one tax savings.

     - Establish clear criteria: Define your tenant selection criteria ahead of time and apply them consistently to every applicant to avoid discrimination

Defining rip or dip isn't necessarily historical but also relative.