Call lenders and start having conversations. 

Happy to continue the conversation privately too if you want more dialogue on this, send me a connection request and we can go from there.

@Jonathan Bock My tax lady calculated the 50K during my previous conversation with her.

WelcomeShoot me a DM if you would like to connect or have a conversation.

Hey All,Does anyone have a formula/process for price per door when looking at a hotel to apartment conversion project?

If the conversion of use doesn’t trigger any depreciation recapture or other negatives, then I could theoretically: buy a home, rent it as an STR for one year, claim all my bonus depreciation to offset W2 income, and then covert it to an LTR year 2.

Happy to have a conversations-

We will certainly get things wrong sometimes, like every real estate investor I know, but have a very high conversion rate. 

That said, through conversations with brokers in the area (and evidenced in the comps I’ve created) I’ve learned that this strategy may be slightly outdated as most properties are currently at market rents given the current rental environment, expenses aren’t a realistic lever to rely on to add value, and there is a real risk I get priced out of the market by buyers with cash, 1031 exchanges, and with longer term hold strategies willing to pay an extra $10-20k per key.

The conversation I'm not hearing when we're talking about ADUs is that Jr.