Depreciation makes fundamental sense, so the question becomes why the shorter basis for some components.

In addition to what others have said about the water leaking and the components breaking before the main fridge functions, there's also the issue of the water filter replacement.

Hi Karen, yes that is definitely the key for the next deal where I underwrite the property taxes component using the purchase price vs. what was paid by seller.

If you later decide to switch to a long-term rental, larger properties like five-bedroom houses have a strong seasonal component.

If there is no value add component, than you're basically going to be paying very close to a market price for the property unless you get lucky ever once in awhile. 

Truth is...I wouldn't have been willing to work as hard to climb the learning curve, as I would have had to figure our every component of this business on my own.For the record, about 18 months into my franchise, my wife and I purchased a 2nd franchise in the market next to us.

That simple $400 purchase has a story leagues bigger than yours.US GDP breaks down roughly as such:70% - Consumer spending (personal consumption)18% - Business investment-5% - Imports/Exports (Net Exports)17% - Government spending(Source: https://www.thebalance.com/components-of-gdp-explanation-formula-and-chart-3306015#:~:text=The%20four%20components%20of%20gross,country%20is%20good%20at%20producing.)Looking at those numbers, it's just incorrect that consumerism isn't the overwhelming driver of the economy and, ergo, consumers are the overwhelming driver.

Diamond in the rough contractors & properties are a key component of the strategy.4.

But you're missing one of the biggest components, cash flow. 

You're experiencing first-hand the factors that push away a huge component of 'investors' toward more convenient (ie, loser) investments.