Central Florida Realty Investors Association • 5125 Adanson St. Suite 900 Orlando, FL 32804 • 407-328-7773
2025 July CFRI REI News
Central Florida Realty
INVESTORS
Celebrating 36 Years of
Networking. Education. Integrity.
Together We Are Stronger.
July General Meeting
Tuesday, July 22
INVESTING IN A "SOFT" MARKET
Strategies To Avoid Being
Caught Holding On Too Long
Panel Discussion
FREE for Members & $20 for Guests
Check out the CFRI Website at
www.CFRI.net
to register for upcoming meetings & classes.
CFRI
Central Florida
Realty Investors
www.CFRI.net
Est. 1989
SPECIAL
DATE
July 2025 newsletter
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As we celebrate this milestone, we want to express our deepest gratitude to
our valued clients. Together with our dedicated team, we've been
instrumental in creating successful real estate investments, revitalizing
communities, and helping individuals achieve their retirement income goals.
Your success is our success, and we are truly grateful for your partnership.
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Winter Garden, FL 34787
(407) 203-6860
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Celebrating
20 Years
Celebrating
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Call to learn about special offers on off-market houses, condos, and multi-family opportunities for CFRI members.
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Contents
3
SPECIAL DATE – JULY GENERAL MEETING – TUESDAY, JULY 22
5:15 - 8 pm – featuring INVESTING IN A "SOFT" MARKET "Strategies to Avoid Being Caught Holding
on Too Long" Panel Discussion plus Central Florida Market Update and Deal of the Month
Presentations. Doors open at 5:15 pm. FREE for CFRI members. $20 for non-members.
4
President’s Corner: Safe Investing in a Soft RE Market
5
Roland H. Acosta, Esq.: Massive Change in Realtor Compensation Part 2
7
Buffie Becker: Upgrade Your CFRI Membership and Take Your Business to the Next Level
9
Devin Colligan: Volusia County Real Estate Investors – We're Back In Person!
10
Antonette El Baz: The Difference Between a Generalist Bookkeeper and a Specialized Real Estate
Bookkeeper and Why It Matters
12
Dawn Capehart: Florida Cracks Down on Commercial Property Squatting with New SB 322 Law
13
Joseph E. Seagle, Esq.: Florida's Heirs Property Law: What Investors Need to Know About the
Uniform Partition of Heirs Property Act
15
Sonia Sarmago: The Hidden ROI of Kitchen Renovations Before You Sell
17
CFRI’s July 2025 Meeting Calendar
18
Dr. Daniel Boyd: What Does the Big, Beautiful Bill Mean for Accelerated Depreciation?
21
Asad Ahmad, CPA: “One, Big, Beautiful Bill” Shakes Up Expectations
23
CFRI Business Member Directory
26
Home Depot Pro Xtra National REIA Benefit Information
27
FlipperForce Discount Program
28
DealMachine Discount from National REIA
29
Title Search Direct Discount from National REIA
In This Issue
CFRI does not exist to render and does not give legal, tax, economic or
investment advice and disclaims all liability for the actions or inaction taken or
not as a result of communications from or to its members, officers, directors,
employees and contractors. Each individual should consult his/her own
counsel, accountant and other advisors as to legal, tax, economic, investment
and related matters concerning real estate and other investments.
Legal Disclaimer
Central Florida Realty Investors, a not for profit business association, is
dedicated to promoting ethical real estate investing and to protect and
promote the best interest of our membership through educational and
networking opportunities as well as community, legislative and public relations.
CFRI’s Mission Statement
The views and opinions expressed by authors of articles contributed to this
newsletter do not reflect those of the association, Board of Directors or staff.
Content Disclaimer
July 2025 newsletter
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VENDOR
TABLES
July 2025 newsletter
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Safe Investing in a Soft RE Market
President’s Corner
Chad Shultz
CFRI President
President@CFRI.net
Real Estate Investing in a Soft Market: How to
Stay Profitable and Minimize Risk
The real estate market isn’t always riding high.
Cycles of growth and contraction are part of the
game, and savvy investors know that a soft market
— where demand slows, prices flatten or decline,
and properties linger on the market — presents
both challenges and opportunities.
If you're looking to invest during a market
downturn, success boils down to disciplined
purchasing and smart exit strategies. Here’s how to
position yourself for profitability while avoiding the
most common pitfalls.
Buy Right — The First Time
In a soft market, buying correctly is non-
negotiable. Overpaying or underestimating
renovation costs can erase your margins quickly.
Focus on these fundamentals:
1. Stick to the Numbers:
Now more than ever, emotion has no place in
your offers. Run the comps meticulously,
account for market softness in your after-
repair value (ARV), and pad your renovation
budget. Conservative estimates protect your
bottom line.
2. Prioritize Desirable Locations:
Even in a slow market, homes in prime
neighborhoods — near good schools, major
employers, or vibrant amenities — retain
value better and sell faster. Marginal locations
become riskier when buyers have choices.
3. Negotiate with Confidence:
Sellers, especially those with vacant or
distressed properties, may be more flexible
during a slowdown. Don’t be afraid to make
offers below asking — the market is on your
side.
4. Plan Multiple Exit Strategies:
Can you flip for profit? Rent for cash flow?
Offer creative financing options? The more
ways you can monetize the property, the less
likely you are to get stuck holding the bag.
Avoid the "Hold Too Long" Trap
One of the biggest risks in a soft market is holding
inventory too long. Every extra month eats into
your profits through carrying costs, taxes, utilities,
insurance, and financing.
1. Price to Move, Not to Dream:
It’s tempting to list at a price that “tests the
market,” but in a soft climate, this backfires.
Properties that linger often get stale, driving
buyers away. Price competitively from day
one to spark interest and create urgency.
2. Stay on Top of Renovations:
Delays kill deals. Manage your contractors
closely, keep timelines tight, and avoid scope
creep. The faster you get to market, the
better your chances of beating further
softening.
3. Watch Market Signals Constantly:
Inventory levels, days on market, and price
reductions in your target area tell a story.
Stay informed so you can adjust your pricing
or exit strategy proactively.
4. Be Willing to Cut Your Losses:
If the market shifts further and your project
isn’t penciling out, sometimes the best move
is to exit with a smaller profit — or even a
break-even — rather than riding the market
down.
Final Thoughts
Soft markets can feel intimidating, but they often
present the best buying opportunities for
disciplined investors. If you buy right, manage
efficiently, and avoid emotional decision-making,
you can not only weather the storm — you can
build lasting wealth when others are sitting on the
sidelines.
July 2025 newsletter
www.CFRI.net
The National Association of Realtors (“NAR”)
Settlement has resulted in a dramatic shift in
the way residential real estate is sold
throughout the United States. The
overwhelming majority of residential sales are
realtor assisted transactions. A realtor will
work hard to obtain a listing of the property
from the seller. The listing realtor must
convince the seller that the realtor has the
ability and the requisite experience and
expertise to get top dollar for the property.
Prior to the Settlement, the standard
commission for a seller’s realtor throughout
the country was 6% which was expected to be
shared with the buyer’s realtor to entice the
buyer’s realtor to produce a buyer to close the
sale.
It was not uncommon for the seller to refuse
to pay the standard commission and for the
parties to agree to reduce the commission
slightly to perhaps 5%; but this rarely
happened. Similarly, it was not unusual for a
discount realtor to offer a smaller commission
of 4% or even 3% in order to get the listing;
but, again, this was the exception to the
general practice. NAR encouraged and
promoted a standard commission of 6%; but
NAR never mandated a standard commission.
Similarly, NAR never dictated that the
commission had to be split equally between
the seller's realtor and the buyer's realtor, even
though this was the standard practice. A
nationwide standard, however, evolved that
the commission offered by the seller would be
split between the realtors and that the listing
realtor would determine the split. The split
could favor the listing realtor or the buyer's
realtor as decided by the listing realtor.
NAR required that the commission that would
be paid the buyer's realtor must be reflected in
the MLS listing of the property. It was believed
that to facilitate sales all known sale factors
should clearly be shown on the MLS. This
practice also made it easy for a buyer’s realtor
to assure the buyer that the realtor
representation was a free service because the
buyer's realtor fee would be paid by the seller
at the closing. There was no contract, no legal
commitment between the buyer and the
realtor. The buyer could disengage with the
realtor at any time. If the realtor happened to
introduce the buyer to the property and was
the procuring cause of the sale, the realtor's
fee would be paid by the seller at the closing.
The NAR Settlement changed all this. The
realtor MUST enter into a written agreement
with the buyer before the realtor shows the
property. The agreement must set out in clear
unmistakable terms the amount that will be
paid by the buyer for this service. The amount
set forth even though it is ultimately paid from
some other source or by some other party
cannot be exceeded unless the parties agree
to a change.
Following the NAR Settlement, it is possible
that a seller may not be paying the buyer’s
realtor commission. A seller can even refuse to
pay any part of the buyer realtor commission.
During the sale transaction, the seller or the
seller's realtor can alter their position and
agree to pay all or a part of the buyer realtor
commission to facilitate the sale. Before the
NAR Settlement, the buyer realtor commission
was fixed and immutable as shown in the
listing agreement and as shown on the MLS
listing. This is no longer true. Following the
NAR Settlement, the realtor commission for a
buyer’s realtor begins with a fixed amount
agreed to with the buyer in the Buyer Broker
Agreement but remains fully negotiable
throughout the purchase process and is not
fully determined until the closing.
Featured Article
Roland H. Acosta, Esq.
CFRI Business Member, Acosta, Moore & Shrader, PLLC
Massive Change in Realtor Compensation
Part 2
July 2025 newsletter
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July 2025 newsletter
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Buffie Becker
CFRI Executive Director
Featured Article
Upgrade Your CFRI Membership and Take
Your Business to the Next Level
July 2025 newsletter
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Officers
Carlos Guerra
Tracy Freeman
Shelley Browne
Shawn McCormick
Ginny Bolling
CFRI’s 2025 Board of Directors
Lindsey Zalnoski
Vice President
Todd LaPierre
Secretary
Chad Shultz
President
Paula Spann
Treasurer
Directors
July 2025 newsletter
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We’re excited to announce that the Volusia County monthly meeting is officially returning to
in-person gatherings starting this July! After a brief hiatus, we’re bringing the local real
estate community back together—and kicking things off at a brand-new location:
IHOP – 320 Dirksen Dr, DeBary, FL 32713
Last Thursday of every month
New start time: 6:30 PM
These monthly meetings are your opportunity to connect face-to-face with local investors,
learn directly from seasoned professionals, and stay up to date on what’s working in today’s
market.
We’re launching our return with a powerful lineup of speakers:
Frank and Sue Fulco – Owners
of Equity Title, will be sharing “9
Unique Ways To Get A Deal and 7
Ways to Get It Closed QUICKLY!”
Whether you’re new to the game or
looking to sharpen your edge, this is
a high-impact presentation with
creative strategies you can use right
away.
Joe Seagle – A highly respected
real estate attorney and owner of
Aspire Legal and My Land Trustee,
will discuss deal structuring,
common legal pitfalls, and strategies
to properly protect your
investments.
Art Musselman – A lifetime CFRI member, will deliver a monthly real estate market update
tailored specifically to our local area. His insights help ensure that we stay informed on the
latest trends, pricing shifts, and investment opportunities right here in our own backyard.
Plus, all attendees will be entered into a raffle to win top-selling real estate books and other
great giveaways!
Whether you're just getting started or have years of experience, you’ll walk away with new
ideas, renewed motivation, and valuable connections to help grow your business.
We can’t wait to see you there!
Featured Article
Devin Colligan
CFRI Volusia County Group Leader & Business Member, Colligan Bookkeeping
Volusia County Real Estate Investors –
We're Back In Person!
July 2025 newsletter
www.CFRI.net
As a real estate investor, your business moves fast. You deal
with property acquisitions, rehab projects, tenants,
contractors, lenders, and a long list of expenses and
income sources that don’t always fit neatly into a
traditional bookkeeping model. That’s where the
difference between a generalist bookkeeper and a real
estate-specialized bookkeeper becomes a key distinction
not just in the quality of your records, but in how well you
can make strategic decisions.
Many investors assume any bookkeeper can “figure it out,”
but what often happens is that the generalist spends hours
tracking down missing receipts, misclassifies complex
transactions, or simply lacks the experience to ask the right
questions. And the result? You end up with reports that are
technically accurate but practically useless or worse, tax
season surprises that cost you thousands.
Let’s break down the key differences:
1. Understanding the Language of Real Estate
A generalist bookkeeper might understand the basics of
debits and credits, but they may not recognize the
importance of categorizing rehab costs vs. capital
improvements or understand how cost segregation plays
into your tax strategy. A real estate-focused bookkeeper
knows how to track acquisition costs, properly record
holding costs during renovation, and allocate expenses
correctly when refinancing or selling.
This knowledge isn’t just academic, it translates into
cleaner books, better tax prep, and more insightful reports
for your CPA or CFO.
2. Familiarity With Real Estate-Specific Tools and
Platforms
From property management software like Buildium and
AppFolio to QuickBooks Online paired with apps like
Stessa, REI Hub, or Rentometer, a specialized bookkeeper
will already be comfortable with the tools of your trade.
This avoids long onboarding periods and prevents
inefficiencies in your financial system.
Generalists, on the other hand, may try to fit your real
estate business into a model that’s better suited for retail
or service businesses, leading to errors, rework, or
frustration.
3. Experience with Entity Structures and Compliance
Real estate investors often work through multiple entities:
LLCs, partnerships, S-Corps, and trusts. A specialized
bookkeeper understands how to manage intercompany
transfers, owner contributions/distributions, and keep
clean audit trails for passive vs. active income, 1031
exchanges, and depreciation schedules.
Generalists may miss these nuances, putting your
compliance at risk and creating headaches for your
accountant at tax time.
4. Proactive Financial Insights
Perhaps the most important difference is that a specialized
bookkeeper does more than record transactions, they help
you run your business smarter. They can identify trends in
your operating expenses, help you compare property
performance, and work with your CPA to implement tax
strategies early (not after the year is over).
Their understanding of real estate allows them to flag
issues before they become problems, like cash flow dips
due to unrecorded vacancies or under performing units
that should be sold or refinanced.
5. Collaboration With Your Professional Team
Finally, real estate bookkeeping doesn’t operate in a
vacuum. Your bookkeeper must collaborate with your CPA,
attorney, and lender. A specialized bookkeeper
understands how your books impact financing
applications, tax planning, and estate structure.
When the bookkeeper is already fluent in the language of
real estate, these collaborations become seamless, and
your whole team performs better.
In Summary
If you’re building or scaling a real estate portfolio, hiring a
bookkeeper who specializes in real estate isn’t a luxury, it’s
a necessity. The right professional doesn’t just save you
time; they help you grow, stay compliant, and ultimately
make better decisions.
Generalist bookkeepers can be great for traditional
businesses, but real estate requires a different level of
knowledge, tools, and insight. Choose someone who lives
and breathes this space. It will pay dividends in clarity,
confidence, and control over your numbers.
For those within CFRI, working with professionals who
truly understand your world can make all the difference.
Featured Article
Antonette El Baz
CFRI Lake County Group Leader & Business Member, AE Pinnacle Accounting, LLC
The Difference Between a Generalist
Bookkeeper and a Specialized Real Estate
Bookkeeper and Why It Matters
10
July 2025 newsletter
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Call to learn about special offers for CFRI members.
2442 Sand Lake Road, Orlando, FL 32809
800-674-3522 | neighborstitle.com
Whether you're a first-time investor or a seasoned wholesale
client, we simplify a complex process. Because we understand
the challenges that can arise, we ensure that your deals stay on
track, giving you the highest return on your investment.
Opening doors
with every closing.
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In a major win for property owners and
commercial landlords across Florida, Senate Bill
322 (SB 322) has officially been signed into law,
delivering long-awaited relief from the burdens
of commercial property squatting. The new
legislation introduces expedited eviction
procedures for unauthorized occupants,
streamlining the process of reclaiming
commercial spaces and reducing the need for
protracted legal battles.
Commercial property squatting—where
individuals unlawfully occupy retail, office,
industrial, or otherwise non-residential real
estate—has become an increasingly pressing
issue, especially in high-demand urban corridors
and economically transitioning areas. Prior to SB
322, property owners often faced significant legal
hurdles, delays, and financial losses while
attempting to remove unauthorized individuals
from their buildings.
What SB 322 Does
SB 322 creates a faster, clearer pathway for
commercial property owners to retake control of
their buildings when occupied without
permission. Key provisions of the law include:
Expedited Eviction Procedures: Property
owners can now initiate a swift removal
process for unlawful occupants, bypassing
much of the red tape previously required in
court-based proceedings.
Affidavit-Based Filing: The law allows
owners to file a sworn affidavit affirming
their ownership and the unauthorized
status of the occupant. If uncontested, this
can lead to quick removal without a full
trial.
Streamlined Enforcement: Law
enforcement is now empowered to assist
more readily in removing unauthorized
persons from commercial properties,
provided the legal requirements under SB
322 are met.
Why This Matters
For Florida’s commercial property owners and
investors, this bill is a game-changer. In the past,
squatters could delay evictions for months,
sometimes even damaging the property or
blocking legitimate business operations in the
process. Now, property owners can act quickly,
protect their assets, and avoid long legal disputes
that drain time and money.
SB 322 also signals a broader legislative shift in
Florida toward protecting property rights and
fostering a more secure business environment. By
removing barriers to reclaiming occupied
commercial space, the state supports economic
growth and landlord confidence.
As always, commercial property owners should
consult legal counsel to ensure compliance with
the new procedures under SB 322 and to
determine whether a given situation qualifies for
the expedited eviction process.
Bottom Line
With SB 322 in effect, Florida is sending a clear
message: unauthorized occupation of
commercial property will not be tolerated.
Property owners now have a more efficient, cost-
effective legal tool to protect their investments
and ensure that commercial spaces are used for
their intended purposes.
Featured Article
Dawn Capehart
CFRI Business Member, Investors Mortgage LLC
Florida Cracks Down on Commercial Property
Squatting with New SB 322 Law
12
July 2025 newsletter
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Real estate investors working with inherited
properties—or dealing with families who own
them—need to be aware of a quiet but powerful
change in Florida law: the adoption of the
Uniform Partition of Heirs Property Act (UPHPA)
in 2020. This law adds a new layer of protection
for families who jointly inherit real estate, and it
significantly impacts how partition actions must
be handled when one co-owner wants to sell.
Who It Affects
The UPHPA applies to co-owners of "heirs
property"—typically families who inherited real
estate without formal estate planning or legal
agreements in place. It’s most common in
situations where siblings or cousins inherit
property jointly but never form an LLC, create a
trust, or execute a written ownership agreement.
Real estate investors, particularly those buying
partial interests in distressed or inherited
properties, need to understand how this law
limits their ability to force sales through partition
lawsuits.
What It Is
The UPHPA is designed to prevent forced sales of
inherited family property, especially those
initiated by outside investors who acquire a
fractional interest. Under traditional partition law,
a co-owner (even a minority one) could file a
lawsuit to force the sale of the entire property,
often resulting in a below-market courthouse
auction. The UPHPA changes that by adding
procedural safeguards and giving family co-
owners the chance to retain ownership.
Who Must Use It
Any party filing a partition lawsuit involving heirs
property in Florida must follow the UPHPA
process. The law applies automatically if:
- The property is held by co-owners who are
related,
- At least one owner inherited or received
their interest as a gift, and
- There is no written agreement (like an LLC
operating agreement) governing the
property.
When It Passed
Florida adopted the UPHPA in 2020, joining a
growing number of states aiming to stop the
generational loss of wealth in historically
underserved communities—particularly in rural
and minority populations.
Where It Applies
The UPHPA applies statewide in Florida, but only
to qualifying "heirs property." If the co-owners
are unrelated, or if there’s a governing agreement
in place, the standard partition laws under
Chapter 64 of the Florida Statutes still apply.
Why It Was Adopted
The law was created to address a common abuse:
investors buying a small share of a family-owned
property and forcing a sale through the courts.
This practice stripped thousands of families of
generational property—often their only major
asset. The UPHPA ensures families are:
- Given notice,
- Provided an independent appraisal,
- Offered the chance to buy out the selling
party,
- And, if necessary, have the property sold via
a fair market listing (not an auction).
How It Works
Under the UPHPA, a court must:
1. Order an appraisal of the property;
2. Notify all co-owners;
3. Offer co-owners a right of first refusal to
buy the interest of anyone seeking a sale;
4. If no buyout happens, consider partition in
kind (physical division);
5. If not feasible, order an open-market sale,
not an auction.
Final Thoughts
For investors, the UPHPA means more due
diligence before acquiring interests in heirs
property. For families, it provides a meaningful
tool to preserve wealth. If you're investing in
properties with complex ownership histories, be
sure to consult legal counsel before proceeding
with any partition strategy in Florida.
Featured Article
Joseph E. Seagle, Esq.
CFRI Business Member, Aspire Legal Solutions PLLC
Florida's Heirs Property Law:
What Investors Need to Know About the Uniform
Partition of Heirs Property Act
13
July 2025 newsletter
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Your Kitchen Is Your Secret Weapon
When preparing a home for sale, it’s easy to
get caught up in curb appeal, fresh paint, and
landscaping. But the real make-or-break
moment for many buyers happens when they
step into the kitchen.
More than any other space, the kitchen
defines the emotional tone of the home. It’s
where daily routines begin and end. It’s where
buyers decide—consciously or not—whether a
house feels like home.
The good news? You don’t need to gut your
kitchen to make an impact. With the right
updates, even modest improvements can
unlock serious return on investment.
Why Kitchens Have Outsized Influence on
Buyers
Kitchens do more than store pots and pans.
They signal how the rest of the home has
been cared for. A clean, updated kitchen
builds trust. A dated or cluttered one? It raises
red flags.
Buyers judge kitchens by both logic (Is it
functional?) and emotion (Can I see myself
cooking here?). Because kitchens carry so
much weight, even small changes can shift
the perception of the entire home.
Small Kitchen Updates That Deliver Big ROI
You don’t need a full remodel to impress
buyers. In fact, the biggest bang-for-your-
buck often comes from strategic surface-level
upgrades that instantly boost visual appeal.
Here are five budget-conscious
improvements that elevate your kitchen
without draining your wallet:
1. Cabinet Facelift
• Repainting or refacing cabinets gives a
fresh, modern feel without full
replacement
• Swapping out dated hardware adds
polish and style
• Cost range: $300–$2,500
ROI impact: High visual return with
relatively low investment
2. Countertop Refresh
• Laminate? Out. Entry-level quartz or
granite? In.
• A sleek surface suggests cleanliness and
durability
• Cost range: $1,000–$4,000 depending
on size and material
Pro tip: Stick to neutral tones for wider
buyer appeal
3. Updated Fixtures & Lighting
• New faucets and modern pendant lights
instantly modernize the space
• Add undercabinet lighting for both
function and mood
• Cost range: $150–$800
Bonus: Updated lighting also makes your
listing photos pop
4. Backsplash Boost
• A new backsplash adds texture, depth,
Featured Article
Sonia Sarmago
CFRI Business Member, Timeless Kitchen Outlet
The Hidden ROI of Kitchen Renovations
Before You Sell
How small updates in your kitchen can add serious value when listing your property
15
July 2025 newsletter
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and sophistication
• Peel-and-stick options exist for the ultra
budget-conscious
• Cost range: $200–$1,200
Design tip: Keep patterns subtle to avoid
clashing with countertops
5. Declutter and Stage
• Clear the counters, remove small
appliances, and add warm staging
touches like a wooden cutting board or
fruit bowl
• Cost range: $0–$150
Impact: Maximizes perceived space and
makes the kitchen feel intentional
By the Numbers: What the Data Says About
Kitchen ROI
Real estate data confirms what buyers already
feel: the kitchen matters.
• Minor kitchen remodels recoup an
average of 81% of their cost, according
to Remodeling Magazine’s Cost vs. Value
Report.
• Zillow reports homes with updated
kitchens sell faster and above list price
more often than comparable properties.
• 69% of recent buyers say they would pay
more for a home with new appliances.
• A fresh kitchen can shave days or weeks
off time on market.
Real-Life Examples: Small Changes, Big
Payoff
“I renovated a rental property kitchen with
$5,000—new counters, white paint, and a
backsplash. Appraised $18,000 higher than
before. I didn’t touch the floors or cabinets.”
— Jona M., Local Real Estate Investor
When NOT to Renovate: Know Your Market
While kitchens often deliver strong returns, it's
important to avoid over-improving.
• If comps in your area don’t support high-
end finishes, stick to clean and functional
upgrades.
• In ultra-competitive markets, buyers may
renovate to their taste anyway—so
overinvesting in luxury upgrades could
backfire.
• Always consult with a local real estate
agent or appraiser before committing to
large expenses.
Final Thoughts: Strategic, Not Expensive
Selling a home is part science, part
psychology. And few rooms carry as much
weight as the kitchen.
The key isn’t to spend more—it’s to spend
wisely. Focus on first impressions. Clean lines.
Neutral finishes. Functional flow. These small
cues create big emotional buy-in from buyers.
When done right, even modest kitchen
updates can unlock hidden value and turn a
lukewarm listing into a multiple-offer
situation.
16
July 2025 newsletter
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Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Real Estate
Investing 101 Focus
Group
6:30 - 8 pm
Commercial &
Multi-Family
Focus Group
6:30 - 8 pm
Advanced
Investors Focus
Group
11:30 am - 1 pm
10
Advanced
Investors Focus
Group
11:30 am - 1 pm
11
12
13
14
Osceola
County
Chapter
6:30 - 8 pm
15
Brevard County
Chapter
6:30 - 8:30 pm
Lake County
Chapter
6:30 - 8 pm
16
Orange County
Chapter
6:30 - 8:30 pm
17
Advanced
Investors Focus
Group
11:30 am - 1 pm
18
19
20
21
Landlording
& Property
Management
Focus Group
6:30 - 8:30
pm
22
SPECIAL DATE
CFRI's July
General Meeting
featuring
Investing In A
“Soft” Market -
Strategies To
Avoid Being
Caught Holding
On Too Long
Panel Discussion
Tuesday July 22
5:15 - 8 pm
23
WIRE (Women in
Real Estate)
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July 2025 CFRI Calendar
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August
17
July 2025 newsletter
www.CFRI.net
If you've purchased investment property in
the past couple of years, you may have
heard some chatter—and some confusion—
about “bonus depreciation.” Maybe someone
told you it used to be 100%, but it’s phasing
out. Or maybe your CPA mentioned a tax
strategy called “cost segregation,” but you
weren’t sure if it still made sense with the
bonus percentage dropping.
That confusion may soon be cleared up
thanks to new legislation being considered
in Washington. And if you're a real estate
investor, especially one who has recently
acquired or plans to acquire commercial or
residential rental property, this is news you
need to understand.
The Big, Beautiful Change: 100% Bonus is
(Potentially) Back
Under current tax law, bonus depreciation—
one of the most powerful tools in the cost
segregation playbook—is scheduled to
phase down by 20% per year. That means for
2024, you're looking at 60% bonus
depreciation. In 2025, it drops again to 40%.
But proposed legislation, dubbed the “One
Big Beautiful Bill,” could change that. If
passed as written, the bill would reinstate
100% bonus depreciation for properties
placed in service on or after January 20,
2025–Inauguration Day.
What does that mean in plain English? It
means investors will once again be able to
deduct the entire depreciable value of short-
life assets (like carpet, cabinets, paving, and
more) in the first year they place their
property in service. That's a major win for
your cash flow and return on investment.
How Cost Segregation Works—and Why
Bonus Matters
To accelerate depreciation, you need a cost
segregation study. This is usually an
engineering-based study that allows you to
break your building into parts and assign
each part a tax life. Instead of depreciating
everything over 27.5 or 39 years, you can
write off certain components over 5, 7, or 15
years. That faster depreciation lowers your
taxable income and puts more money in
your pocket today.
But here's where bonus depreciation takes
things to another level. With bonus, many of
those short-life components can be fully
depreciated in year one. That means even on
a modest $500,000 building, a cost
segregation study might allow you to deduct
$100,000–$125,000 in year one alone if
100% bonus is in effect.
Without bonus, you still get those
deductions—but they’re spread over 5 or 15
years. That’s a good thing. But with bonus?
It’s a great thing.
Does 100% bonus mean you can deduct the
entire cost of the property? Not quite. Bonus
depreciation only applies to building
components with a 5-, 7-, or 15-year useful
life. The value of 27.5 and 39 year
components still depreciates over 27.5 or 39
years.
Why This Matters for Your ROI
Let’s say your tax rate is 25%. An extra
$100,000 deduction in year one could
reduce your tax bill by $25,000. If your cost
segregation study cost $5,000–$6,000,
you’re making back your investment several
times over—in the first year.
This upfront cash can be reinvested into
renovations, acquisitions, or debt reduction.
You're not just saving money, you're
Featured Article
Dr. Daniel Boyd
CFRI Business Member, Cost Segregation Services, LLC
What Does the Big, Beautiful Bill Mean for
Accelerated Depreciation?
18
July 2025 newsletter
www.CFRI.net
improving your returns, your velocity of
capital, and your flexibility as an investor.
Is It Too Good to Be True?
Not quite. There are a few caveats:
Recapture: When you sell the property,
the IRS claws back some of your
depreciation benefits. But that doesn’t
make cost segregation a bad idea—it
just means you should plan for it and
weigh your holding period carefully.
Legislative Uncertainty: As of today, the
bill isn’t law yet. But it has bipartisan
support and strong backing from the
business and real estate communities.
This is a deduction, not a credit.
Accelerated depreciation only benefits
you if you owe taxes. Any depreciation
you don’t use will carry forward to
subsequent tax years.
Are you a real estate professional? If
not, you will be limited in using the
accelerated depreciation to offset your
W2 earnings.
What about properties acquired before
January 20, 2025?
How much bonus depreciation you can
claim is determined by the year a property
was placed in service. Properties placed in
service in 2018-2022 get 100% bonus, 80%
for 2023, 60% for 2024, and properties that
were placed in service on or between
January 1, 2025, and January 19, 2025 will
be eligible for 40% bonus depreciation. To
be placed in service, the property must be
ready and available for its intended use.
What does this mean in real numbers? Let’s
say you purchased three identical rental
properties – the first on December 31, 2024,
the second on January 19, 2025, and the
third on January 20, 2025. Then, you hire a
specialty tax firm to complete cost
segregation studies on each property. After
subtracting land value, the cost of each
building is determined to be $500,000. The
cost segregation study identifies $120,000 in
5- and 15-year components in each building.
Let’s see how bonus depreciation changes
the amount you can deduct for each
property:
For the 2024 acquisition, you can
bonus depreciate 60% of the 5- and 15-
year assets ($120,000), so your
increased deduction will be
approximately $72,000.
For the January 19, 2025 acquisition,
you can bonus depreciate 40% of the
5- and 15-year assets ($120,000), so
your increased deduction will be
approximately $48,000.
Finally, for your January 20, 2025
acquisition, you can bonus depreciate
100% of the 5- and 15-year assets, so
your increased deduction will be the
full $120,000.
What Should You Do?
The bill hasn’t passed yet, so any
changes to bonus depreciation remain
hypothetical. But if you’re planning to
buy or renovate property in early 2025,
you can incorporate a cost segregation
estimate into your financial projections.
Get informed. If you’re new to cost
segregation, now is a great time to
learn how it works. A basic
understanding of accelerated
depreciation can help you make
confident, timely decisions.
Request a free cost segregation
estimate. If you acquired property on or
after the proposed date, it’s worth
contacting a specialty firm to evaluate
how much bonus depreciation might
be available under the new law.
Budget for a cost segregation study.
For a single-family rental, an
engineering-based cost segregation
study from a reputable firm can cost
between $2,500 and $6,000. This may
seem costly, but a non-compliant study
can cost you far more in the long run.
Changes to tax law are out of our control—
but how we prepare for them isn’t. The
investors who benefit most are the ones who
are ready when opportunity knocks.