@Craig Cann I had not dealt with soaked carpet pads or wood subfloor but in a generic basis ozone treatment worked for us however I have heard others use enzymatic cleaners such as Nature’s Miracle or Rocco & Roxie are the best in getting them out completely. 

Prohibited Transactions: The IRS considers certain transactions prohibited, either by the nature of the transaction itself or who the transaction is with (known as disqualified persons).

Tax treatment has such a significant impact. 

In short: $558k gross, ~9% cap, modeled cash-flow of ~$92k/yr with professional management (or ~$140k if self-managed), and conservative 5-yr after-tax proceeds of ~$1.4M.I’m sharing the math, assumptions, depreciation treatment, and the risks/opportunities I saw (value-add ideas, occupancy sensitivity, and market comps).

In short: $558k gross, ~9% cap, modeled cash-flow of ~$92k/yr with professional management (or ~$140k if self-managed), and conservative 5-yr after-tax proceeds of ~$1.4M.I’m sharing the math, assumptions, depreciation treatment, and the risks/opportunities I saw (value-add ideas, occupancy sensitivity, and market comps).

The main difference is liability protection, not tax treatment.

That means depreciation recapture applies on your share when you report the sale.This is one of those situations where it’s worth having a CPA or tax attorney review the deed to confirm how title was structured, because that detail drives the tax treatment.

Just looking for some feedback on the deal given the current nature of the market.

Basically they limit anything likely to increase the usage on the septic.I think I would start by investing the limitations on your current septic system of if there is a nearby sewer that you can tie into.Depending on the constraint on the septic system, maybe an increased leach field or a ATU can address the limits of your current septic system.Aerobic Treatment Units (ATUs) are similar to standard septic systems in that they use natural processes to treat wastewater.

In short: $558k gross, ~9% cap, modeled cash-flow of ~$92k/yr with professional management (or ~$140k if self-managed), and conservative 5-yr after-tax proceeds of ~$1.4M.I’m sharing the math, assumptions, depreciation treatment, and the risks/opportunities I saw (value-add ideas, occupancy sensitivity, and market comps).