All Forum Posts by: Andy Acosta

Anyone know of any good STR savy tax CPAs in the middle GA area? I'm starting to learn that the tax laws differ from short term and long term rentals.

Hey BP!

So we've heard it said depending on location and a few other variables that the typical "rule of thumb" for our cash on cash ROI on a rental property we should try to shoot for is anywhere from 8%-12%. (The "base hit" number and the "home run" number). Those who are familiar with STRs know that an 8% cash on cash return on an Airbnb property would be a pretty bad performing property in that realm, since the revenues are so much higher.

So if I’m analyzing a deal for the purpose of AIRBNB, what is a good rule of thumb cash on cash return I should be shooting for when considering all the start up costs and expenses that go into that? What is that “base hit” number and the “home run” number for STRs? I might be overthinking this so let me know if I am !

Thanks !

Hey BP,

I have a question in regards to what approach I should take when investing in property intended for short term rentals/Airbnb.

So with the nature of short term rentals, being more like a hotel rather than rental, there are a lot more up front costs, (such as furniture, amenities, cleaning supplies, bathroom/kitchen supplies, etc) that can really drive up your initial cash needed to fund outside of acquiring the property, but a lot of times it is worth it considering how much more cashflow you can make.

Since I’m putting a lot into the deal upfront for all the things listed, should I be looking for more turn-key appreciation properties with not a lot or any rehab needed, or should I still shoot for properties that need cosmetic repairs in order to find a better deal?

If there are any Airbnb investors who are familiar with the game, does the higher cashflow and ROI justify not finding "as good" of a deal than a 80% ARV deal.

Trying to fix my mindset and expectations at a realistic level before diving fully in. Thanks!

What’s up BP ?

I currently have 2 properties right now. One of them is a former primary residence that is now an Airbnb and the other is my primary residence where I currently live.

I plan on buying another primary residence property in 2022 with the intention of turning my current primary residence into a 2nd Airbnb.

I’m in the process of renovating and refurnishing my current primary residence from scratch and obviously have costs.

The questions is, am I able to claim all of these expenses as tax deductible business expenses, even though I’m not moving out until 2022? What are the legal issues with this if any and how should I go about tracking that when I get ready to return to my accountant?

Hello all! I'm looking to do a house hack here pretty soon and I'm wanting to leverage a good deal with as little of my money as possible. My dad is retired military and has not utilized his VA loan and I'm pretty sure he isn't planning on it. Is there a way I can use his VA loan to finance if he and I have a mutual agreement? If so, how would I go about that? What would the process look like legally speaking? Thanks for all you all's help!

@Ashish Acharya thanks for the wisdom! Follow up question. It might be stupid: can I start an LLC for the intention of putting my business financials through, and add the property later ?

I have an Airbnb property that I plan on taking a cash out refi on. I'm considering putting it in an LLC. Should I refinance before or after I put it in an LLC? Does it even matter? Are there any pros or cons to either option and what kind of possible issues could I run into ? Much appreciated!