All Forum Posts by: Kikuye Llamaguchi

@Boffill Yosleys How is it going with the mid-term rentals a year later?

@Justin Chung Did you ever invest in MTR's in Loma Linda? 

Thanks everyone! Good to know 14.5% tax is pretty standard for STR's.

Quote from @Myka Artis:

These taxes are only imposed on short-term rental stays, so the trick is to find the number of nights considered an STR in the city. You can avoid those taxes by making that number your minimum number of stays. I've operated about five hours south of STL as a mid-term rental, and it's been great. STL will be a great mid-term rental market because it's a drive-through city with I-55 and many people visiting attractions.

Good advice! Ill look that number of night up. And yes, the plan is to try to fill up the months with MTR and fill in gap days with STR so it might not even be an issue. Good to hear you're doing well with your MTR!

Should I move on and look somewhere else? Is the MTR tax lower but still in the 11% range? 

I was planning to set up a mid-term rental in St Lou and switch to short term to fill up some open days but noticing there is a lot of taxes imposed on the STR stays. With Prop S, state, and city tourism and hotel tax it can add up to 14.5% and an add on Abnb's cut.

I am looking at a house in 29P to be used as a vacation rental also.  @Krystle Padilla and @Samuel Gostnell mentioned that 29P has stricter rules for short term rentals than Yucca Valley and Joshua Tree. Also, there seems to be a complaint against an airbnb in Indian Cove and I think there was mention of decreasing the amount of permits in concentrated areas.  Does anyone know specifics? or heard anything else?   

@Shahriar Khan Didnt know I could split up a 1031 like that... interesting! Ill talk to a lender and my accountant. Thnx.

I have a similar situation as @jenpothilat 's posting, both of us living in expensive cities (Im in LA) with $540k cash to invest but I have a different goal and more limitations.  My intent on this next purchase is to make rental income to support a career change into investing full-time. 30k a year in rental income PLUS continuing to work but on a part-time basis should enough for the transition. Because my current apt (soon to be listed) is a rental property I have to buy a single family, condo or a duplex for rental purposes to qualify for the 1031 exchange (to pay little to zero taxes on profit).  What kind of property should I be concentrating on?:

Would a 3 brm condo in silverlake (rent for $3200/mo) that I can sell in a year to fully re-invest $540k OR buy and hold in a 2/1ba duplex (rent for 4k/mo but 100k more in asking) in hyde park, a slow but up-coming area but will hopefully appreciate soon-ish.  While these rental numbers sound high, my actual profit will be 50% once all expenses and cap x is accounted for and they both dont hit the 30k/year to transition off. I could put the minimum down OR put more $ down (50%) to get my rental income higher and apply for a Heloc loan to re-invest later?