All Forum Posts by: Tony Hightower

If you sold, then you would be paying taxes on the gain of 100k. If you 1031, you would need to 1031 into at least a 200k property to defer all gains. Which means in 5 years you would need to pull 100k out of pocket for that exchange. 

You could also do a partial exchange. Pay tax on some of the gain based on your personal tax situation. Or create more passive losses, to offset the gain. 

NOT REAL ADVICE, NOT A CPA, TALK TO A GOOD ONE. 

@David M.

Yes, I know what depreciation is. I also know what I want yo do with the cost segregation(take more losses up front). I know about active and passive losses.

My specific question is about changing my personal home that is now worth much more than I originally paid into a STR and how I would value the property on my depreciation schedule.

Also, there are some specific rules as to active participation in STR rentals that primarily rent for 7 days or less.

If I turn my personal residence I have owner for 9 years into a STR, what value do I use for depreciation of the property?

Can I also do a cost segregation based on that value?

I have several LTRs but not any STRs as of yet. I have a W2 for the next 2 years. I am looking to take the STR depreciation against my W2 wages.

@LaRussa Henderson

I have noticed appraisals are all over the place. It is also harder to find comparables on multifamily.

Also, rents have gone up considerably in Cville. Did you have a PM give you an estimate of rents? Does it already have leased tenants?

Sometimes this is helpful to appraiser if there are already leases in place.

I have a chance at purchasing a multifamily recently. But, seller had just released all tenants on new leases well below market.

I am currently only renting month to month and have raised rents without long term leases.

Just a few things there to think about.

@Madigan Tumilowicz I am in Clarksvill and deals can be difficult to find now. My last 3 were off market finds. A lot of investors looking. I have seen offers way below 1% rule. It also appears there are new flippers that are giving 80-85% of ARV just to get in game. If you start looking in Clarksville, I can give you help on rents for certain areas of town. Some areas much higher than others.

@Tony Figurelli How soon are they needing a place? i have a 3/2 that will be available later in summer.

Also, when i hear Nashvile/Clarksvill i feel they may be commuting. If from Cville to Nashvill, they may want something that is near I24.

Just finished 2 evictions in last 3 weeks.

FYI, When tenants do not show up for the court date, they do not hear the Judge give posession and the important 10 day notice.

So, after that 10 days you have to fe for the writ of posession. Our Sherriffs office called within 5 days to setup a time for meeting to change locks and set out. They told me they actually have 20 days to process the writ.

Also, if you lock tenants out on eviction day, they have 48 hours to contact you and setup time to come get rest of stuff.

Start to finish mine were 48 days and 44 days.

Not sure if this is allowed, but thought i would ask.

I was planning on taking my wife on a trip to San Diego for the weekend but have decided to postpone that trip because of Corona Virus. She is a high risk person.

Decided to go to Smokies for weekend. Would prefer to patron a BP member. if you have anything available for this weekend or have a link to your STR, please DM me.

Thanks,

Tony

@Ricky Nigro

Based on those numbers, i would pass. Not sure the state this is in, on a $60k ARV, taxes seem high as does insurance. Also, are you paying the water/sewer. Could this be passed to tenant?

@Ryan Proffit

If she did not return it, she is still on Month to Month. Send out another 30 day notice for another increase if you feel you need the lease. (Call it "Our Short Term Month to Month rates")

If you feel she is looking elsewhere, maybe this is a way to collect a more fair rent while still allowing her to look.

Else, collect the higher rent on Month to Month.