Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

Significant improvements excluded were homes that after the 2017 sale were torn down and built new, large renovations, additions added, extensive deferred maintenance addressed. 16 of the 152 homes were excluded leaving 136 to further analyze.Obviously there is some subjectivity in determining which homes had ‘significant improvements’.

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

You don't want to do loan extensions, pay more taxes, pay more holding costs.   

A cost segregation study was performed on this single family home in West Palm Beach, FL purchased in 2023 with a depreciable cost basis of $841,850.

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

Seems like you could definitely stretch your cash further there for sure.

Quote from @Michael Lynch: People rarely talk about the amount of effort involved in operating a STR.Never sell a property unless you have a clear plan to reinvest the money into something that will perform better or move you closer to your goals.

Curious how that’s been performing?

I have done this a few times myself and have a few basic recommendations:1) Make sure the seller owns the property free and clear and that it's very clear to both parties whether the arrangement involves a deed of trust or contract for deed2) If a balloon payment is involved, be sure to assess your ability to refinance and make that balloon payment in the future- optional extensions can help manage this risk3) Understand the tax implications if the interest rate is notably above or below market rates4) Get title insurance!