The delivery timeline is also reduced allowing quicker lease up schedules.

In my experience, a high welfare rate in an area isn’t automatically a detriment it depends on how you structure your investment and manage your properties.Key considerations:Tenant screening & management: Even in areas with higher assistance rates, thorough screening and clear lease agreements can mitigate risks.Market dynamics: Areas with higher welfare numbers sometimes have more stable rental demand because tenants rely on assistance programs, which can reduce vacancy risk.Local laws & support: Understanding local landlord-tenant regulations, eviction rules, and available support programs is critical to protect your investment.Property type & location: Investing in well-maintained properties in desirable neighborhoods, even in high-welfare areas, can still yield strong returns.Ultimately, it’s about balancing risk and opportunity.

A robust screening process with background checks, credit verification, and rental history can significantly reduce risk and vacancy issues.3.

In fact - they recently reduced the CAP for the Eastern region and so unless you have the ability to wait (on an extensive waitlist) or the property in question is commercially zoned - or in specific communities that allow STR usages, don't plan on a coastal cottage here anytime soon.

Other than that, you're learning the ropes of real estate and ideally reducing your housing expense. 

Turnkey properties allow you to add cash flow without the heavy rehab work, letting you scale faster and more hands-off.If you want to reduce risk and simplify, paying off existing units can improve cash flow and lower stress.

More marketing, more listing sites, more rate adjustments, more listing wording adjustments, more lower dollar amenities added, removed high maintenance extras, changed internet providers, reduced TV package costs across Smokies properties saving over $1k a month, removed gas grills as they were a large maintenance (maintaining costs for propane and replacements/local bear kept destroying at 5 properties), changed cleaners, relooked all maintenance schedules, changed plumbers, changed hvac company, changed pool cleaners, made sure I never pay interest on business cards (pay off every Monday), changed minimum stays, changed some deposit policies and I am sure there is alot more squeezing I just forgot as I started running a DOGE on my ops before DOGE existed starting last December.

As with most renovations, improvements in the property increase rents and reduce vacancies.

My question is can the capital improvements be added to the cost basis in order to reduce the long term gain.

With smart, proactive planning, you can reduce your tax burden and give yourself greater financial freedom as your portfolio grows.Equally critical is building a strong asset protection strategy.