After 5 years of searching for a STR that had what I considered the components needed for success:  vacation/tourist location and seasons, property curb appeal, size and etc.

He told me since I just bought this building; I can depreciate the components or something.

A study can identify and reclassify components, often accounting for 20-30% of the property's basis, into shorter depreciation schedules (5, 7, or 15 years), and often includes 100% bonus depreciation.

I standardized all major renovation components in 2017.

Note, these are fully engineered studies meaning we breakout all 5, 15 and 27.5 year components specific to the property.

I am so used to doing that from my corporate days working for a constuction machinery manufacturer, that I did not even mention it;  the annual price list goes out in spring along with a letter that states ".. due to increased cost in materials, components and labor.." so we send a similar letter to tenants citing usually taxes, insurance.Thanks for beeing an RPA member, it is important! 

If you have to move mechanicals around, if y'all have natural gas HWT/furnace - then factoring in the exhaust components will be important to ensure proper ventilation.I'd ensure getting an inspection, and reviewing the property condition disclosures to check and see if it has flooded in the past.

May also cover your bank account getting drained by hackers.4) If you have an office you will need general liability, unless landlord offers and adds you to their policy5) Workers Comp only needed if you have employees

Suspended LTR depreciation/losses often aren’t lost, they can carry forward and may be released when you sell, so the “can’t use it” point may be overstated.Real estate sale taxes aren’t just 15–20% LTCG: depreciation recapture, possible 3.8% NIIT, and state tax can raise the effective rate.A 1031 has strict deadlines (45 days identify / 180 days close); if you need more time, consider reverse 1031 or a more passive “parking” option like DSTs.STRs can potentially offset W-2 income, but it’s more complex than “100 hours”—material participation rules and documentation matter.Cost segregation can be powerful but only if the deal supports it; it accelerates depreciation and can affect future recapture.Consolidating into fewer properties can reduce operational risk, but watch market/regulatory/insurance volatility.Best next step: compare hold vs sell taxable vs 1031 with full tax/return components (recapture, NIIT, suspended losses, timing risk).Always consult with a CPA who specializes in real estate.

This is never going to be enough $ budgeted to run a property without losing a ton whenever anything needs to be fixed or replaced, or anything at all goes wrong (which it does because this biz relies on dealing with both imperfect humans and properties that are always needing repair or components replaced).