All Forum Posts by: Preet Oberoi

I am looking at a 1300SF SFH. Major items include converting an office space to a full bath and walk in closet, existing bathroom renovation, new deck, add a new driveway and car port, kitchen renovation, new flooring, new windows and doors, paint, replace siding, replace roof and add some curb appeal. I have 3 estimates from four GCs for around 160K without negotiation. This is too high to justify the ARV of 350K. The asking price is 260K. I am quite interested in this property for multiple reasons , but the math isnt working. I dont see me getting the deal for less than 200K. So my question is, this is my first flip and I am wondering if I am missing something or doing too much. Use many subcontractors instead of a GC ? Get estimates only for labor and buy ALL the materials myself ? If will be more work for me which I am willing to do but is it worth the headache and risk ? Would welcome any advice.

Thank you everyone for your insights. I have my mind set at getting a short term rental to offset my W2 income. I will be going with a more traditional SFH instead of a Tiny home. One search on Youtube returns hundreds of videos that go over exactly how a STR can be used to offset W2 taxes. Just that I am skeptical - I cant be the first genius to be doing this! Anyone out there on W2 , owning a STR that is taking the benefit of its managment qualifying you to take real estate losses against your W2? Would love to connect.

Thanks for your input Samuel! 

He worked only 1000 total hours in 2024, as he did not have a W-2 job for bigger chunk of the year. 50% of 1000 would be 500 Hours that he needs to spend in real estate , right? And the minimum seems to be 750 therefore he needs 750 hours in real estate. What am I missing?

This situation applies to me as well with two differences - 1) my husband didn’t have a W2 job for 7 months of the year and worked on one of the two LTRs extensively (hands on repairs and upgrades). Some work was put in on the 2nd LTR as well 2) his W2 job was 1000 hours in 2024 from Aug-Dec. Doesn’t he have to show more than 50% of 1000 or 750 hours whichever is higher on the time spent to qualify ? That’s what I am seeing in my research - more than 50% hands on time, but you mention 100%. Can you please clarify ? Would really appreciate it. His time spent is pretty close to 750 (we documented it) and have reciepts of materials and text msgs for evidence. 

Thank you all for your insights. Two things you guys did clarify are that I need to be thinking about an installed manufactured tiny home and not one in wheels. And then I do need a CPA to confirm that home will qualify as a STR and give me the tax benefit I am hoping for. My research tells me that once I qualify as a REP with the material hours spent on the STR, I can use that status to deduct depreciation from my LTRs as well by using a regrouping election on my tax return. I am blowing a lot of money from W2 income between me and my spouse on taxes! Looking at this as a strategic addition to my portfolio. Please feel free to poke holes at this , would appreciate it.

I am looking at getting a tiny home in the Hudson Valley in NY. Would really appreciate a connect as I am new ti this space. I have two LTRs and want to get a STR to offset my W2 income. I love the idea of a tiny home.

Hello everyone, I am looking into buying my first Airbnb and the sole driver for this choice is to be able to take depreciation of my two LTR properties against my W2. Can anyone poke a hole in this approach ? Also, within this approach, the option that attracts me the most is purchasing and installing a 'tiny home' on a campground that allows it. Has anyone done this and can share how to go about it and their experinece ? I also wonder if this unconventional STR would pass the criteria for the STR test for tax purposes. Any insights you can shre around these questions would be super helpful.

Can I get a copy of the real estate professional log sample, please? I would also like to connect for last year tax filing.

Thank you for your prompt response Samuel! Now I’m getting cold feet because of the possible increase in construction cost due to shortage of labor coming from the Immigration related shake up. I would love to hear if you and others have the same concerns!