All Forum Posts by: Desiree L.

Congrats!

 Is this a big yee-haw for BP or really a hit against your CPA?

Get a CPA that fits your agenda. You'll be surprised by how much more you're maybe missing. I went from TurboTax while on W2 with ordinary investments to a small biz CPA to now a CPA firm that can do small biz/REI and they're exceptional with their knowledge. They're the priciest I found, but it what it is.

Big YEE-Haw for Bigger Pockets.

Basit- The point of the podcast that I was listening to was that this "STR Loophole" ( I know it's not a loophole, but that's what they were calling it on the podcast) is relatively unknown to many tax professionals and STR owners. Others on the podcast were unaware of it. It's great if you were up to speed on this, but it's quite clear that many are not. One of the reasons for my post.

I have to give a shout out to Bigger Pockets! I am a regular listener to the Bigger Pockets podcasts when I am doing chores around my house and my STR property. A few months ago, I was listening to a podcast (I think it was one of David Green's, but I don't remember which one.) He had a female CPA on who talked about the benefits of an STR Loophole for those of us who have W2 income as a way to take deductions that are normally not permissable when the tax payer makes a certain amount of income. I had a huge amount of expenses in 2022- pool, new windows and doors, that I was unable to use as deductions because of my W2 income.

After hearing about this STR Loophole, I reached out to my tax preparer to see if she was aware of this. She was not. She contacted the IRS to learn more. She just amended my 2022 taxes and I am getting a very large 5 figure refund from the IRS. I have another reason to thank Bigger Pockets for my financial well being.

Quote from @Rob Glasser:

hey guys were you able to learn delray STR rules? @Desiree L. @Alissa Kronovet im looking into it now as well. from a quick glance looks like you can as long as you obtain STR permit 

Hi Rob-  I'm just seeing this message, forgive the delay.  I am presently hosting in Delray Beach.  I have a multifamily property and host the back cottage.  As long as there is no HOA, you should be fine.  You need to register with the State of Florida as well as the County of Palm Beach to insure all is legal.  There is a facebook community called West Palm Beach AirBNB Host community where you can learn more.

Did you ever go further with Realwealth? I've been following them as well.

Hi Everyone-

I just went under contract for a multifamily in Delray Beach. I plan to rent out the 1 BR cottage as an STR. Looking for recommendations for cleaners, and part time property managers (I plan to live in the main house and manage the property myself, but will, at times, need help when I travel).

If anyone has any tips on the STR market in Delray Beach, I'm interested in hearing.

Thanks.

Investment Info:

Single-family residence buy & hold investment in Bradley Beach.

Purchase price: $560,000
Cash invested: $140,000
Sale price: $800,000

Purchased a 1904 home 4 blocks from the beach. Moved in, renovated it over 3 years... much of it myself. Rented out the attic on AirBNB for $150/night in season. Last year, I hired a contractor to execute on the complex kitchen design that I created which included removal of a wall and replacement of windows and doors. In March, I had an offer for $800K before I was able to list on the MLS. I sold the house, moved down to Florida and hope to do something similar in Delray Beach.

What made you interested in investing in this type of deal?

I knew the market in Bradley Beach, NJ was hot and difficult to get into. I chose a house that was very dated, but had tons of potential. I did a lot of the cosmetics before I moved in (removal of carpet, refinish wood floor), paint walls and ceiling. The home had tons of charm once it was polished up. I decided to take advantage of the charm on AirBNB and I found out I was a great host. enjoyed the experience and looking to do it again.

How did you find this deal and how did you negotiate it?

My target was Bradley Beach, so I was getting alerted every time a house came on the market. This particular house had come on the market, but went under contract quickly- before I had sold my previous house. Then, my house went under contract, and I was alerted that this house was back on the market. I quickly went to see it, placed an offer which was accepted.

How did you add value to the deal?

Modernizing the home without taking away the charm.

What was the outcome?

Ability to live in the home for the duration while getting an income from AirBNB. Sold the house for a $100K profit after 3 years.

Lessons learned? Challenges?

Being able to identify a good contractor is key. I was lucky that both time I used a contractor, they were professional and honest. There was one episode where one contractor subbed out to a floor installer. My experience with him was a nightmare, but luckily, was limited to 1 day.

Hi Alissa-

I see that no one has responded yet. I will be moving to the area in the next week and hope to buy in Delray or Deerfield. My plan is to host short term rentals, so i have been looking into this. From what I've seen, Delray and Deerfield allow STRs, unless you're in an HOA community. The county of Palm Beach allows STRs. But, Boca Raton has restrictions against them. So, it can be quite confusing. I have not seen anything regarding Delray Beach restrictions against STRs.