You can take bonus depreciation on any property that has assets that qualify.So to answer your question, yes, you can take bonus depreciation on components of a house that is used as a MTR.However, what you may want to determine from a conversation with an accountant is whether the activity will be treated as active or passive.The next question would be, even if you can do a cost segregation study, would the added depreciation from bonus depreciation be beneficial.

Good plan to start in Baltimore with boots on the ground—keep it simple and systemize: pick a tight buy box, then run a “Noise-to-Numbers” scan on volume (agent MLS pulls, 2–3 wholesalers, and one direct-to-seller list), comp only within close radius and similar beds/baths/condition, and budget rehab with two contractor walks plus a contingency; start with light cosmetic flips to test your GC and processes before tackling heavy value-add.

What are some important components I should consider?

The investors who win long-term are the ones who pair the real estate with a service component that actually enhances the tenant experience and protects the asset.We’re seeing the same trend here in Memphis.

Largely cause of the contracting component. 

This is the efficiency component in a capitalistic system.

The property must also be placed in service by December 31, fully furnished, listed, and rented two times.With a cost segregation study, you can accelerate depreciation on the property’s 5, 7, and 15 year components and claim 100 percent bonus depreciation.

There is a comp on the block at $4,500 per BP rent estimator but it is larger with 4 bed and 3.5 bath.

The STR tax strategy has 2 main components:1) The average stay per guest is 7 days or less for the tax year.AND2) You materially participate in your STR.

Here’s the breakdown 👇🏗️ Home Builder Confidence Reaches Highest Level Since AprilBuilder sentiment jumped 5 points to 37 in October, according to the National Association of Home Builders — the highest reading since April and a welcome change after months of stagnation.All three index components improved:Buyer traffic: up to 25 (+4 points)Current sales: up to 38 (+4 points)Future sales: jumped above 50 for the first time since January📊 Bottom line: While we’re still below the 50 mark that signals true expansion, this is a big step in the right direction.