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.

Are you adjusting expectations, or do you build in a bigger cushion on every deal?

Adjusted Purchase Price: $90kFinanced Amount (75%): $67,500Cash to close (25%): $22,500Result: Lower debt service, less liquidity for repairs or reserves, higher cash to close. 2.

Others use that amount for closing costs or rehab reserves when using DSCR or Hard Money loans, which lets them leverage their funds instead of waiting years to save up.The biggest mistake I see is waiting too long or thinking you need “perfect conditions”  creative financing and smart leverage can really speed up your first deal.Curious what others here started with  how did you make your first deal happen?

. • Reputation: Unlike flips, where speed and margin rule, new construction is about consistency.

Based on the above, is “speed” something that you’re really looking for in a cost segregation report?

The single-family market feels like it’s hit the brakes—demand has dropped, homes are staying on the market longer, and sellers are starting to adjust expectations.

I would set the option term for 24-36 months from now as the time when he can exercise the option and adjust the price to account for expected appreciation with a discount applied for a $150/month of his rent prior to the transaction.  

Reliable contractors are gold in this business, and having them on speed dial can save you money, time, and stress down the road.I’m a Memphis-based investor-friendly agent, so if you ever explore opportunities in this market, I can help you find the right property and connect you with a vetted local team.What market is your first rental in?

Also, hard money can be a powerful tool for speed and flexibility, but it's key to build in enough margin so you’re not squeezed during the refi.Underwriting guidelines can vary a lot, so it helps to work with lenders who understand both BRRRR timelines and investor goals.Feel free to reach out anytime if you need any help!