Our team is currently working on franchise hotels, specifcally with Marriott, Hilton, and Hyatt, that have some sort of value add component.

• Shortening timelines using prefabricated components?

Quote from @Quinton Brown: 👉 1.10–1.15 DSCR — The Minimalists@Quinton Brown Sorry, I was asking @Michael Santeusanio more about the components of "Debt Service".

A cost segregation study basically separates your property into components that can be depreciated faster than the standard 27.5-year schedule.

Bigger projects usually have more components for cost segregation, which means deeper depreciation and better cash flow on paper.Appreciation is part of it, but honestly the predictability and ability to force value through operations seem to be the real pull.

They’re putting $490 million into retooling the plant and creating 800 full-time jobs.To support it, GE just awarded $150M+ per year in supplier contracts across ten states—plastics, steel, aluminum, castings, components—with $40M+ landing right here in Kentucky.And it isn’t a one-off.

There are many many others but that is just a low hanging fruit component.

Understanding the process and different components is key.

Yes, you can cost-seg only the STR portion, but you’re not limited to only that.You’re allowed to run a cost segregation study on the entire property even if only part of it is used as a short-term rental.The key is allocation.A cost seg breaks out the components of the whole building.You then allocate depreciation between:The STR portion (non-passive if you materially participate)The LTR portion (passive unless you qualify as REPS)So you’re not restricted from studying the whole asset.You’re just restricted in what losses you can use depending on participation.2.

I’d also be thinking about your taxes from the start, understanding the difference between passive vs. non-passive income, and what works with your current income, and see what you can do to make the most of it.You can write off things like mortgage interest, property taxes, insurance, repairs, improvements, depreciation, and even take bonus depreciation on certain components with a cost segregation study.