All Forum Posts by: Larry King

I live an hour away from Kingman and have a couple of friends that live and work there as well. Housing has always been super affordable there, and new construction has increased in recent years. I've never really done a deep dive in analyzing the area because it is a retirement community, median income is very low, and there arent a lot of jobs in the area. That being said, its probably still worth looking at the data at those prices

@Jay Hinrichs This is a must! My wife and I bring our own pods to every STR, surprisingly only about 30% have Keurig and it always bums us out. Such an easy and cheap accommodation, and what I consider to be a must these days

@Michael Plaks @Randy Rodenhouse @Account Closed 

This is all really good info and exactly what I was looking for, thank you. We believe we can meet REPS material participation requirements using the short term loophole, so long as we keep very detailed records. Regarding personal use, there would be none so thats a non issue. 

You have all brought up some great concerns regarding depreciation recapture and tax free gains vs tax deferrals, I think I need to zoom out and look at the bigger picture when comparing all options.

@Bill B. actually the house has gone up in value significantly since we bought it, we have a ton of equity that could be pulled tax free via sale, however we also have a 3.25% mortgage on the house and it could work well as a MTR or LTR as well. We are in a really good position on this property and have multiple options, this is why I'm trying to get a better understanding of which strategy is going to be the most beneficial.

We are planning to turn our primary residence into an STR at the end of this year and are looking to take advantage of accelerated depreciation if we can meet the REPS requirements. To my knowledge I believe this is possible with a property purchased as an investment property, but would it apply to a primary residence turned investment property?

We absolutely plan on meeting with a tax professional to plan this out, but I’m curious if this is even possible before we push to that next step. Any feedback is appreciated, thanks!

@Taylor L. Great advice! We did this on a SFH that was our first house, we lived in it for two years and rehabbed it, that paired with appreciation between 2015-2017 netted us a nice profit.

@Kyle Swarts I’m curious about renting mobiles on private property as well. We have a ton of opportunities in our area to purchase affordable property that have pads and fencing and are ready to put a mobile on, and people looking for affordable housing.

What I’m concerned about is just what you’ve experienced, these mobiles are built with cheap materials and I’m afraid the maintenance would be a cash flow killer, and unfortunately the mobiles themselves do not appreciate. I am only a beginner though, so I will be following this thread!