All Forum Posts by: Ross Alcorn

I'm looking for some advice around cost segregation.

I purchased a townhome in 2019 that has now been an LTR for two years. I purchased a separate townhome in 2021 that I am currently house hacking in and plan to turn into a rental property in the future. I purchased both of these homes as new construction. I plan to hold these properties another 5-10 years as of right now. My question is does it make sense to do two separate cost segregations for these town homes?

When tax planning with my CPA earlier this year I asked the question around what best practices are his real estate investor clients using for cost segregation and does it make sense for me to?

I was told it doesn't make sense usually to do a cost seg if the purchase price of a home isn't $1 million or above since they are fairly expensive. 

My goal with potentially doing a cost segregation is savings on taxes in the short term to acquire more properties over the next few years. 

Thank you everyone for the replies! All very insightful and helpful. We are looking at getting into multi family is why the switch from Charlotte to Ohio. Small multi family inventory near metro areas from my research and working with investor friendly agents in Charlotte and Raleigh Durham (both where I've lived) has been hard to come by. If there are some they're usually not around your larger hospitals where most travel nurses work or want to live. They will not be good for an MTR strategy and are most likely a complete rehab. If we are able to combine multi family as an MTR to start to maximize cash flow and have good quality tenants is our thought but understand they want to live somewhere safe. 

We would be looking at something that has been recently renovated not a full BRRRR and if we had to do some touch ups like paint outside/inside, flooring, etc. that is fine.

I've worked in the healthcare systems the past 8 years so I have connections there that I can tap into to make it a turn key process and helped get my girlfriend up and running with her MTR at the end of last year. My biggest concern for this strategy was safety for travel nurses so all if this is extremely helpful!

Hi BP Community,

I've been analyzing Cleveland, Cincinnati and Columbus for medium term rentals for traveling medical professionals. I am an out of state investor in Charlotte, NC which I've acquired 3 properties which I've been focused on appreciation here. I'm looking for a lower entry price point which is why I'm looking towards Ohio + have friends who live in all three markets. I am leaning towards Cleveland due to the lower entry price point and cash flow potential (on paper). I like Cleveland with the largest healthcare opportunity here, three large sports teams, and busiest airport in Ohio, and could pivot to a short term rental strategy down the road if MTR didn't work out as much as expected. I've looked at Columbus but the price appreciation here is similar to Charlotte and Cincinnati, doesn't look to have as many healthcare jobs/opportunities as Cleveland. 

Some of my hesitations of Cleveland are the crime rate, age of the homes, and population growth declining. Here are my questions below:

1. Have people had success here in MTR strategy? My concern is nurses wanting to be somewhere safe while also not too far from Cleveland Clinic/University. I've been told a few B/C+ but not sure if a street over could turn these nurses away from these homes.

2. A lot of the homes are 50-100+ years old for the lower price point to entry. My concern here is deferred maintenance with a smaller up front cost. Does anyone have any best practices or things they look out for, for these older homes?

I am open to feedback on Columbus and Cincinnati if people have thoughts in those markets that you think would fit better for my strategy.
Thank you!