Single-family rentals: when one house is worth studying

The old answer

For years the honest answer on a single rental house was probably not. Study fees relative to a $300,000 basis with partial bonus depreciation made the arithmetic marginal.

What changed

100% bonus depreciation, permanent, for property acquired and placed in service after 19 January 2025. A $410,000 depreciable basis reclassifying 20% produces roughly $82,000 of accelerated basis, essentially all deductible in year one rather than spread across 27.5 years.

At a 35% rate that is around $28,000 of tax deferred against a study fee under $2,000. The arithmetic works.

What comes out of a house

Inside: appliances, cabinetry, vanities, countertops, carpet and vinyl plank, blinds, decorative fixtures, ceiling fans, smart locks and thermostats, security systems.

Outside, and usually larger: driveway and walkways, patios and decking, fencing and gates, landscaping and irrigation, exterior lighting, pool and pool decking where present, outdoor kitchens, fire pits, pergolas, sheds and site drainage.

Typical range 14% to 24%, higher where there is a pool or substantial outdoor build-out.

Portfolios change everything

Once the engineering model exists for a floor plan and finish level, applying it across similar properties takes a fraction of the effort. Per-property cost falls sharply at ten, thirty or a hundred houses.

Build-to-rent communities are the cleanest case: identical units, one set of construction records, shared site work, one placed-in-service window.

The usual caveat

All of this assumes the loss is usable. For a passive investor with wages and no other passive income, a $80,000 rental loss suspends. It is not lost — it releases on a fully taxable disposition — but the present value is much lower than the headline. Screen this before commissioning anything.