All Forum Posts by: Tony Hightower

 Hey, Getting back late, I can see where we are having large wage growth. That is mostly related to how low wages were for years!! Just 7 or 8 years ago, many would need to start at $10 or below. I have a tenant that was driving to Nashville to work at McDonalds because the pay was so much higher. We have had several new companies come to town and provide more jobs. Maybe just enough to offset the population growth. 

I have not really noticed changes to insurance. But, i may not be paying close attention. 

Good Luck with your search!! If you make it here, we have several good REI meetups. Lots of people willing to share.

 Hey Tony, I see you have Clarksville on the top of your list. Clarksville is still a good market(Not as great as a few years ago) to invest. I have been here 50 years and seen the growth.

The good…

-Prices more reasonable than Nashville. 

-Not Nashville, but can be there in less than an hour. 

-Still growing community. 

-New Factories and expanding Factories

The less than good. (if you are going to also live where you invest)

-The infrastructure has not been able to keep up with population growth. (Traffic, long waits at restaurants, Did i say Traffic, Not a diverse town for activities)

-There seem to be a lot of vacancies for lease and lots of people also looking to lease. The market pushed prices up so quickly and wages for most have not gotten them back to par. 

-Tornados!!  Yes, seems we have been hit by tornados every other year for the last 15 and had many others since the mid 90’s. 

Not long ago, you could find 1%+ deals just throwing a stick. Since 2020, I have seen some houses more than double in price. 

Overall, i do not consider it a bad place to live if you can get used to the not so good. We also have several REI meetups monthly. Let me know if you want more info. If you decide to come visit the area, let me know. Can show you around.

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