The interest rate being paid on the debt as compared to the ROI being earned on the money that you maintain by not paying off the debt3.

Those numbers do not seem correct, unless you are using terms like loan amount of $104,000 is the unpaid principal balance (which is the amount that accrues interest), and the $270,000 is the total payoff.There are two components to a mortgage statement - the first is the reinstatement amount - this is the amount to bring the loan current.

RachaelHey Rachel,you’re correct, if you’ve run your numbers the conclusion to drop the beachfront condo idea in favor of an SFR in unincorporated parts of Pinellas county is the way to go.

It’s not a profit center for them and they have a reputation to maintain.

I have an IRA/SDIRA and stocks/bonds increase in value, the balance goes up each year (minus the mandatory SEPP payments) correct?

Not all but I have spoken to a bunch and most have a product.I have been working on something to post about STR coverage and what happens when you don't have the correct coverage, but it has been like pulling teeth to get info.

Maybe as much as 50-60 years if maintained well. 2.

Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

Ensuring that you have, and continuously maintain, a safe property for guests, is barely even an afterthought for most STR investors.

The correct procedure is to process payments to owners from your company's operating account.