From my experience, the older the home is the closer it's components are to being obsolete ie; definitely roofs, AC units and electrical.

This is a major component of your tax secret sauce.

Some tenants leave the place in great condition while others will require you to do paint, repairs/replace certain components.

My advice, if you have time, is to implement the subcontractor model and just hire out individually each component of the job.

Early conversations give you optionality without committing you to anything.As for timing the 5 year Treasury, even if it drifts lower over the next couple of months, the spread is often the larger and less flexible component.

A few quick recommendations:Confirm it qualifies as residential rental (27.5-year) and watch for any personal use issues.Be conservative on interior components (cabinets, sinks, related plumbing/electrical can get scrutiny).Lean into the amenities — hot tubs, saunas, exterior lighting, concrete pads, landscaping often drive solid 5- and 15-year allocations.Make sure renovation costs are well documented — invoice detail makes a big difference.Double-check placed-in-service date and bonus eligibility.Sampling doesn’t apply unless you’re dealing with a portfolio.When structured properly, STRs can sometimes outperform traditional long-term rentals due to amenities and upgrades — just don’t get overly aggressive on structural components.Hope that helps 👍

A couple things stand out:- Does your monthly debt service figure include the principal component as well, because if so, that needs to be accounted for. - Closing costs are likely to be higher- DSCR loans cannot be used for distressed properties; it looks like you have the order reversed; you will need to rehab the property first, then get a DSCR loan afterFinally, the returns in rental real estate are not solely from the monthly cashflow.

The key fundamental lessons are still the backbone of personal finance today:Lesson 1: Pay yourself firstA key component: weather you make $100k or $1M the simple math should be the same.

An engineer sent by a cost segregation firm can find a lot MORE components to bonus-depreciate than you can estimate yourself.

I know a cost segregation study would be too expensive for such a small amount of property, but is it permissible for me to estimate the value of the components on my own?