All Forum Posts by: Kyle Swengel

All MTR demand has really dropped off in Tucson this summer. Even last summer was a lot better. Sounds like the travel contracts just aren’t being given out and there is way more options available on FurnishedFinder for travelers coming to the area. 
I rented by the room for a little bit and what I learned is the location and the room to bathroom ratio was really important. Also little things like door locks, assigning cabinet space, parking, and noise control were important. Also, a room rental a lot of the time needs to have some luxury items that draw attention like a hot tub, pool table, nice entertainment area, etc. 

I know a couple friends of mine that are also in MTRs are switching theirs to long term to get people in. It’s just not the same as it was the last couple years for the mid term people like us. 

Hope that things change but it’s looking like we might have to pivot to different strategies if they don’t. Im working on setting up contracts with companies and improving my marketing to get ahead again, but let me know if you find something that works. Best of luck! 

-Kyle 

Hey Billy, I do a meetup in town once a month if you’re around. We will be doing one around mid way through this month. There are a few others here as well. I do buy and hold with small multifamilys and rent as corporate rentals mainly. Let me know if I can help you in any way! 

Kyle 

@Lane Kawaoka

Great explanation Lane. Thank you for the advice.

Hi BP,

So, I'm under contract on solar to be put on my 4plex in Tucson AZ. I pay the utilities and I will always pay the utilities at this house. All four units are travel nurse mid-term stay housing, so it makes sense for me to keep them in my name. And I have since gotten rid of all of the gas appliances and water heaters in the building so the whole property is electric now. 

I live in one of the furnished units and I have it under the VA loan as my primary residence. But I was unaware that I would only be receiving 1/4th of the 30% tax credit because I only reside in 1/4th of the 4plex. Is this correct? And what else on this subject am I unaware of? I thought locking in an electricity payment or lack thereof would be a great choice for me, not to mention my property is perfect for solar with how tall and flat it is, and that I pay for all utilities. I'm a little shocked because I wrapped a few other things into the loan that are related that need fixed on the property thinking that I would get 30% back on those as well...

I'm a little frustrated and wonder where I went wrong, if I did. Please let me know your thoughts!

Kyle

@Bernard Reisz I just read the post from @Michael Plaks and it was very informative. Thanks @Michael for putting that together.

I asked my CPA to sit down and go over the math and the pros and cons for my specific situation and portfolio. They basically said they were too busy for consultations right now and to take their word for it. But I still think with the high NOI that my peppery brings in it could really help, even though I am not a tax professional and it's not a STR where I could apply it to mu W2 taxes to push those down.

@Chris Picciurro

But to your point I cannot call it a STR for tax purposes and use the STR loophole unfortunately :/

@Chris Picciurro

I’m not a real estate professional and the 4plex units are all furnished and I rent them to travel nurses so there is a lot of furnature I own in there.

Hello BP,

I have a fourplex in Tucson that I bought a couple years ago now. I’ve been renovating it and am almost done.

I asked my CPA about bonus depreciation and doing a Cost Seg study on the property so I could get the 80% bonus depreciation but this is what she said:

“Note that I don’t do that kind of work because it requires engineering knowledge that I don’t have. Also, I am not sure it’s worth the costs since you have small homes: the studies are usually reserved for large buildings with multiple units. Depreciation sounds good but it’s reversed when the building is sold so the benefits are probably minor at best. Note that the best tax advantage is expensing the repairs when possible rather than capitalizing and depreciating them.”

I bought my property for $400K and it’s worth close to $600K now. Am I going about this wrong? I thought that taking bonus depreciation was a no brainer? And most people I talk to say I should do it. What am I not considering and why is my CPA not wanting to go for it? Is my building really not expensive or big enough to where it makes sense?

Any help would be great. Thanks!

Just a reminder to my Tucson AZ friends that this is tomorrow! Feel free to swing by Crooked Tooth at 6pm. We will be on the back patio!

Hey BP!

We are having our monthly InvestTucson meetup at Crooked Tooth Brewing Co off of 6th St at 6pm on May 27th (this Saturday!!). If you haven't joined us for a meetup before, we are a group of us local Tucson AZ investors who get together, hangout, and talk real estate! Everyone is from different backgrounds/experience levels, and the goal is to get to know other investors in town and help eachother in whatever way we can! If you haven't gotten a deal done yet or you're a real estate pro, feel free to join us! If you have any questions about the event or want to reach out to me prior to it feel free to shoot me a request and a message.

We will be out on the back patio, so head on out there and look for a group of people having a good time!

Hope to see you there!!

Kyle Swengel

@Cade Olof

@Mark Savalle

@Bobby Hosmer

@Ali Garced

@Sam Ohanesian

@Thomas Nordberg

@Lindsay Marca

@Heather Davis