CA is a hard place to buy real estate, but some people do prefer that since they are willing to jump through all the loopholes while many others won't.

I've spent years figuring out where to look for these deals, as well as identifying a couple of loopholes that can sometimes boost TDR yields even further. 

The locals know the loopholes in the laws and try to put down as little as possible. 

I've done cost segs on STRs for the loophole but I'd like to get into some more properties that aren't STRs and use bonus depreciation to offset my insurance business.

Hello Biggerpockets Family, Need help with two things:I need recommendations for a reputable firm that can perform a cost segregation for a STR investment in Fairfield County Connecticut.Concerning the passive activity rules exemption requirements related to the STR Loophole, what are examples of “extraordinary personal services” I can incorporate within the business in hopes of converting from STR to MTR (midterm rental) while still qualifying for the STR loophole?

@Bette Hochberger Cost segs and the STR Loophole save my clients thousands every year! 

I think they closed the loophole this past summer. 

Good Afternoon BP Traffic,I am posting from San Diego right now. I am a military member with fresh orders to Norfolk. After looking around the area with my Fiance we discovered that the rental rate is very low. (~1.2$...

A cost segregation study increases the depreciaiton expense in earlier years as opposed to over 27.5 or 39 years.You can normally benefit by doing a cost segregation study if1) You can claim real estate professiona status2) You can claim the loss from having an active rental(STR loophole)3) You have another passive investment that you disposed of that had a large gain or have a portfolio of other rentals that are generating a lot of passive income.I find it now with real estate prices high and interest rates high, a cost segregation may not benefit unless you fall in one of the above 3 boxes.

De minimis or not, the LP interest still has to separately qualify for material participation.Where I agree with you is that, should the LP interest somehow qualify for material participation, it then could push its losses thru the REPro loophole if available.