W-2 or business income, which means I can’t actually use the depreciation that my rental properties produce.I am investing for long-term cash flow and appreciation, but the depreciation — which is a huge part of the return — is basically wasted on me right now.Because of that, I’m exploring the idea of bringing on a “depreciation-only partner.”Basic structure I’m thinking about:Partner contributes $10k–$20k toward the down paymentI contribute the rest (typically $30k–$40k depending on the deal)I handle all of the work: deal finding, due diligence, financing, property management, repairs, accounting, etc.I keep 100% of the equity, cash flow, appreciation, and long-term upsidePartner gets the depreciation for a set number of years (5, 8, or 10 depending on contribution amount)Partner gets their initial capital back at refinance or saleNo cash flow split, no equity split — just depreciation in exchange for helping me scale fasterVery similar to an LP position, but entirely backed by the tax benefitsFor someone in the 22–32% tax bracket, the annual tax savings from depreciation typically works out to a 6%–15% return on capital depending on their contribution tier.From my side, it lets me scale faster while not giving up equity or cash flow.My questions for the community:Has anyone structured a deal like this before?

This structure supported a large-scale renovation that ultimately yielded strong returns.How did you add value to the deal?

If you’re open, I’d enjoy hopping on a call or video chat to learn more about how you’re scaling this in Chicagoland / vicinity.

— Do I have the right contractor/PM systems to scale safely?

And new construction is not going scale that fast either, that will take a decade.

If you had access to another lender or partner ready to fund, how much more could you scale in 2025? 

Working with a CPA experienced in real estate planning is key, especially if you’re looking to grow and scale.

It’s also very landlord-friendly, which makes managing multiple properties easier as you scale, and the long-term appreciation potential is strong, so over time your portfolio can really replace your work income.

Hi, Want to scale up our portfolio,  using  Co-living strategy for single-family and 12 or more units.

-Landlords want stable tenants, not weekenders.The MTR model hits the perfect balance between profit and peace of mind.Who else thinks 2025 is the year to scale MTRs?