All Forum Posts by: Nicole Cotrino

Also, can the 100 hours be combined between my spouse and myself? Or does it need to be individually by one of us?

Thank you! When you say DIY cost segregation - is that something where we still need to find a cost segregation firm, or is that something we would literally do ourselves? We purchased our property for $412k, are in a high W2 tax bracket, and intend to keep the house long term.

In terms of timing, we included expenses for the home in our 2023 taxes but hadn't started renting it yet. Would that mean we would have to use a catch-up adjustment? Or no, since we only started renting it out in 2024?

Thank you both for the feedback! We will be showing material participation so that we can deduct from our W2 employment. My understanding is that one of the ways we can do that is to show that we spent 100+ hours actively working on, or managing, the property - and that our time working on it exceed the amount of time any other person spent working on it. Does it have to be 100+ hours for one of us individually, or can it be 100+ hours for my spouse and I combined? Also, and thoughts on how detailed our documentation of the time spent needs to be? Of course we will ask these questions to our CPA as well, but would really love any feedback. Thanks again!

My spouse and I purchased a cabin in November 2023 as a STR and started renting it out in March of this year. I've been hearing a lot about cost segregation studies and have a few questions…

- What are some of the key factors that determine whether a cost segregation study makes sense? (I’m still trying to understand the basics!)

- We are going to start searching for a CPA with a lot of experience in STRs, but haven't found one yet. Would the best first step be to find a good STR CPA or to first focus on finding a good cost segregation firm?

- Will we substantially diminish the benefits of a cost segregation study if we don’t get it done before the end of the year?

- Any recommendations on how to vet CPAs and cost segregation firms? Or, any suggestions on specific companies to use? 

Thank you!

Hello, 

I am a new investor looking to invest in a buy and hold rental property in Central NJ. I have been looking since this summer and keeping track of rental prices via a spreadsheet. I think I have noticed a dip in rental prices in recent months, and online research indicates that rental pricing may really drop during the winter.

However, I found a few homes that look like they could give me good CoCROI for this area. I want to go forward and make some offers, but now I am wondering whether I should wait until we are closer to the season when rent prices increase again. 

On one hand, it would be best to rent it out when rental prices are high. On the other hand, maybe I am only seeing the low list prices I am seeing now because it is a slow season for selling - and I wouldn't get as good of a deal if I wait.

Ideally, maybe I should wait until the end of the slow selling season, so that by the time we close two months later we will be entering the fast buying season. But, is it worth waiting when I found some homes that could be good deals now?

Has anybody made decisions about when to buy based on season?

Thanks,

Nicole

We are currently looking to purchase our first rental property. We've narrowed our search to 4 bedroom homes, because there are very few 4 bedrooms on the market now and the ones that are on the market move very quick. There seems to be more demand than supply.

We found a home we love that is a little over 1,800 square feet. It is completely renovated, top to bottom, and practically feels brand new. Running the numbers seems to indicate that we would make a good profit, but I'm having trouble deciding how much it will rent for.

Our realtor ran comps, and most of the homes are bigger than ours (maybe 2200 square feet or so), but somewhat outdated. I'd like to say that ours will rent for about the same, because it feels very nice even though it is a bit smaller.

So, I'm just wondering what everyone's experience has been... would you say that renters tend to put more weight on niceness or size, if they have to choose?

Does anybody know of any good, investor-friendly realtors and/or property managers in Ocean County NJ? I am in the Toms River area, looking for buy and hold rentals.

Thanks!

Wow, it looks like I started quite a debate, and that was not my intention at all. I was initially just very thrown off to be told that I could just have a 15-30 minute phone call, which could take place in about a week and a half, and then we would have to set up another call if I needed more time. I worried that I would have to wait another week and a half to get more information.

As it turned out, I received an email from the investor asking if I would be available for the call today, instead. I took the call and did not feel any pressure to limit my questions. We did need to set up a second time to talk, but that's 2 days from now - so not a big deal.

I wouldn't say, at all, that I don't like the formality of the process. I completely understand the need to have an initial conversation so that everyone (investor and company) can gage the general fit. However, I would suggest being more clear in the email, stating that the process does include as much time as you need with a Senior Manager - that just happens after the initial phone call. It was disconcerting to receive an email offering 15 minutes (after telling the person on the phone that I had many questions), to send an email expressing my concern that 15 minutes wouldn't be enough time, and to then receive an email back saying that we could have multiple calls (and attaching a calendar that was booked for the next week and a half). 

I understand now that the process includes plenty of time for investors to ask as many questions as they wish. If that had been communicated more clearly to me in the emails, I wouldn't have been nearly as worried. It wasn't the formality of the process that mattered to me. It was that, from what I understood, there wasn't going to be a way for me to have an in-depth conversation with someone in which I could ask all of my questions - and that was a 'red flag' to me. Knowing more about the process, I now feel like it was less of a red flag and more of a miscommunication.

Just wondering what happened with your property in the end? Was the new management company able to help?

I am looking to get into the turnkey market, and after spending a lot of time looking at different turnkey providers, I decided to call Memphis Invest with a list of questions. I read a lot of good things about the company on Bigger Pockets. 

I looked around online and created a list of questions that I would like to ask - this is a big investment for me, and I want to make sure I do my due diligence and really understand how they operate. When I called, though, the person who contacted me (via email) said that they could set up a 15-30 minute call, and that if I needed to talk more, we would need to schedule another conversation.  It seems like they can only spend 15 minutes at a time on the phone with potential investors? And, they wouldn't be able to set up that first 15 minute phone call for another week and a half. I was extremely surprised by this, as I have read so many good things about Memphis Invest and have even seen at least one of their people encouraging lots of in-depth due diligence before choosing a turnkey company. 

I'm just wondering whether I set my expectations unrealistically, or if people have found other companies to be more inclined to talk, in depth, to potential investors? Also, for people who have interacted with Memphis Invest, did communication become easier over time?

Thanks.