When we're gone, the next generation can get a step up cost basis and also eliminate all the depreciation recapture. 

You’ll probably be fine using TurboTax for just one property, but here’s something most people don’t think about: the first year is the most important because you’re setting your “starting point” for depreciation and basis.

Many QI firms like ours will have calculators on their websites that can help you as well.The first thing you want to calculate is your adjusted cost basis, which is the purchase price plus capital improvements, minus depreciation.

A couple clarifications that might help:If you don’t do a cost seg and just put the buildings into service, then demo later, you can generally write off the remaining adjusted basis of the building as a demolition loss (since you didn’t buy it with the intent to tear it down - establish this).If you do a cost seg and take depreciation (including bonus), your basis just gets reduced by what you already wrote off.

This is normally done by allocating costs based on square footage or amount of bedrooms.Best of luck!

Quote from @Ian Hutton: Analyzing a neighborhood, would this be a house by house basis to get an idea of the rent, insurance cost, property taxes, crime, and school district? 

When you are dealing with Lenders on a regular basis, you will need to move things around and omit things that are not part of the discussion.

@James Ryan, if you are married, and your spouse doesn't work (e.g. stays home and takes care of the kids and actively manages your rentals), might qualify for REPS and then you'll be able to apply all your passive deductions/depreciation/losses to your active income.Plus, with a CSS you get Partial Asset Disposition (great for big replacements)  and Adjusted Depreciation Basis (morbid benefit, but potentially excellent depending on your age and exit strategy).Here is a diagram to help you in your CSS/REPS quest:https://drive.google.com/file/d/1PbTTtht-VF_irUPh4D7qRgpNqkl... 

Mortgage rates are about where they need to be and more normal. 

"normal" is very relative to location and timing, was it normal to find cashflow in 2020/2021?