It has no life: it is simply an expense that is necessary to do the rest of the work, so you can write off the $25,000 demo & disposal cost immediately, then depreciate the rest.I have heard some investors will break out the cost of individual materials, such as roofing nails, and say those only have a useful life of 10 years and depreciate that component at a faster rate compared to shingles, but most of my projects are too small to bother with a few hundred dollars worth of nails.This isn't a cost segregation and the way you're explaining actually wouldn't be allowed. 

Investing out of state is most definitely an endeavor which CAN go well if done correctly; I believe that as Jay said previously, the PM will be your critical component.

Depends on the investment strategy.You're right that there are two components, the cash flow and proceeds at sale.

Did you change any variables in relation to specific components of the deals you mentioned (MF and Self Storage) such as your:1.

Breaking the components down one at a time.

There's no way of knowing if you have a deal if you don't understand that key component. 

(If you do a straight stock for stock comparison of the 1929 DOW components that were in the index, its 12 years, and if you factor in dividends, its like 5 years.

. $5k CF at terms above = $280k3 - Year 30 (28 more years) = $1.66M (remember the CF component is for 5 properties)4 - 5 paid off properties w/appreciation = $5955 - TOTAL = $1.66M + $595k = $2.26M TOTAL

And there are two components to managing in this scenario, the property manager managing the property and tenants, and the property owner managing the property manager.

Even missing one component can cost you tens of thousands of dollars.