All Forum Posts by: Ron Singh

Pros would be completely passive investing and better tax deductions. The exact amount of depreciation you get depends on the project specifics but as an example we just did one where with bonus depreciation investors would get a 40% write off year one from what they invested. If the sponsor uses bonus depreciation as we do then you get the full amount in the first year regardless of close date as opposed to straight line of accelerated it is prorated to the close date (double check all this with your CPA of course :) ).

Cons would be no control and lower returns

STRs:

Pros would be control of the property and higher returns

Cons is that STRs are extremely time consuming to manage. You are literally running a mini hotel and have to have strong systems in place for guests communication, cleaning, etc and even then it can take a good bit of time.

I personally do syndication projects, also invest in syndications passively and have STRs. If your young and spunky and trying to get as much cash flow as possible STR might be a good option. If you are a busy working processional who just wants your money to work for you then multifamily might be the better option.

Let me know if this helps! All the best. Jonathan

Thanks @Jonathan Nichols

- Do you know how the lock-in period works, is money going to be stuck for X years or so ?

- how to find the good syndication opportunities ? are there any good and proven successful ones or any site to find them ?

0 Votes

Quote from @Basit Siddiqi:

Each syndication is different so it is better to ask a sponsor on expectations.

Regarding which is better, the activity that is harder will normally generate a better return.
Syndications, in general, you are giving up some return for less time consumption.

Thanks. @Basit Siddiqi

so sounds like syndication is less work, less money but better in deduction as compared to self managed str ?

Do you know how the lock-in period works, is it in contract that your invested money is locked for x years or so ? what if i need to get the money back for some reason before that duration. would it be complicated or might have huge fee etc ?

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Exploring pros and cons and also evaluating what option provides more advantages to w2 earner in terms of better tax deductions -

A. Syndications: will get K1 form, what does it include ? prop tax,mortgage interest and cost segregation ..anything else ?

1. if you invest 500K in Syndications, how much deduction to expect in K1 ?

2. is it matter if invest in dec Vs Jan ? would you get more deduction if you invest in Jan? not sure if it will be prorated for case of dec ?

B. Buying/managing mf (1-4 units) for str (active involvement ) :

per prop tax,mortgage interest and cost segregation etc assuming about 80K deduction with same investment amount(500k), since only 80% allowed this year.

what option do you suggest for better cash flow, ROI and tax deduction advantages.

1 Vote

Quote from @Cameron Masters:

Quote from @Ron Singh:

Quote from @Judy Wensloff:

Hello @Ron Singh,

I don't believe there are any new restrictions, and no holds on STR's in the area. The Southern entrance into Yosemite through Oakhurst is in Madera County, while the park itself, and the central entrance through Mariposa are in Mariposa County. So the two counties have different requirements. At this time, Mariposa is stricter with more inspections required. It's a complicated situation in Madera County right now and probably better suited to a phone conversation.

@Judy Wensloff Sounds good, sent connection request

Do you suggest Meriposa or Oakhurst ? based on local str/rental rules

goal is long term hold and use for str/personnel use - vacation

prefer turn key condition or light update needed

Hi Ron,

Mariposa county has a maximum occupancy of 10 guests per STR. So depending on the size of home you are purchasing, it can drastically alter your underwriting. We own in Madera County (20 minutes of Oakhurst) and have been under contract in Mariposa a month ago. Both have opportunity, but I would be selective with what you're looking for. Please reach out if you'd like to connect.

Thanks @Cameron Masters

which location is good for both str and ltr(in case needed to convert later) ,so easy to find good ltr tenants,

also for str how much do you charge as a management fee ? do you manage airbnb listing too as a part of pm ?

if you know any existing str for sale currently, could you share details ?

0 Votes

@Jorge Abreu

to clarify on the topic : "Tax Advantages of Multifamily Real Estate"

in terms of tax deduction, for w2 employee/investor, is the same for both below cases ? :

1. Buy multi-fm apartment complex(4 units or 20+ units doest it matter ?) and self manage / have pm on-site to manage,

but actively involve in decisions.

2. Invest in bigger commercial projects, i.e 100+ units apartment complex in Development (whole project is being developed/managed by

different company)

0 Votes

Dallas, Texas

Quote from @Judy Wensloff:

Hello @Ron Singh,

@Judy Wensloff Sounds good, sent connection request

Do you suggest Meriposa or Oakhurst ? based on local str/rental rules

goal is long term hold and use for str/personnel use - vacation

prefer turn key condition or light update needed

0 Votes

Quote from @Judy Wensloff:

@Dawn LaMattina Asher Here you go:

https://www.mariposacounty.org...

Then click on:

B&B/Vacation Rental/Ag Homestay and Amended Certificates when on-site inspections required - for Transient Occupancy Tax (TOT) (PDF)

It's not the clearest...feel free to call if you have questions!

Hi Judy,

are there restrictions/hold on new str permit now ?

or is it still possible to get new permit , or what other near by cities/county might be good for str ?

0 Votes

Quote from @Peter Mckernan:

Quote from @Ron Singh:

What are you looking to spend? There are a lot of markets that are super low and the returns are matching that, but some markets are getting good returns but need to put in a lot of money to get those returns.

dm sent

0 Votes

Quote from @Bradley Buxton:

@Ron Singh

Have to checked out the Reno / Tahoe Area? There are few STR regulations in the city and county wide. There are still opportunities for STR, MTR, and value add equity building. I'd be happy to go over the pros and cons of the Reno / Tahoe market.

Thanks

if you see anything available in Reno/tahoe area, let me know if numbers works

will be using mgmt company, heard upside poential is better in Reno for appreciation

0 Votes

@Gi'angelo Bautista @Brandon Carlson @Brandon Boyce @Bruce Woodruff

Any suggestions on how to find the str for sale in anywhere in CA ?

with long term goal and also if law changes, should be able to convert to ltr

0 Votes

All Forum Posts by: Ron Singh

Ron Singh has started 55 posts and replied 232 times.

Post: Tax deductions and advantages for : Syndications VS buying+managing mf property

Post: Tax deductions and advantages for : Syndications VS buying+managing mf property

Post: Tax deductions and advantages for : Syndications VS buying+managing mf property

Post: Mariposa Short Term Rentals

Post: Tax Advantages of Multifamily Real Estate

Post: Mariposa Short Term Rentals

Post: Mariposa Short Term Rentals

Post: Good Locations for STR's in California .

Post: Good Locations for STR's in California .

Post: Good Locations for STR's in California .