I don't know anybody that keeps material credit card debt or just pays the monthly statement when due.

As you do this more often, you'll be able to keep a spreadsheet of per square foot prices for materials and labor to get things done and you'll be able to estimate this yourself.

As an investment property owner, this means less maintenance and fewer unexpected expenses from storm related damage, often resulting in more affordable insurance premiums, less wear & tear on mechanical equipment, roofing materials or exterior surfaces.

This can easily be obtained by spending it on materials you will be buying regardless.

For a lot of things you can just look up material costs and assume the same for labor. 50% material and 50% labor holds roughly true for the entire project, at least for me here in Milwaukee, your labor cost will probably be higher in the Bay Area.100-125k spread would be tight, even for me here in Milwaukee.

We purchased a property in early October and are placing it in service this week (mid November).We had intended to run a cost segregation study and try to accelerate depreciation which we can deduct against our W2 (assuming material participation).However, we have been reading through the IRS guidelines (eg publication 946 on Property Depreciation) and there seems to be the concept of "short year" which would mean that we can only deduct ~1.5/12 of a year's worth of depreciation in 2024.Is this correct or are there any different rules for STRs specifically?

However, if you or your spouse can meet the Real Estate Professional Status (REPS) requirements by working over your w2 hours in real estate and materially participating, the rental losses could offset your active income.

Thank you in advance for anyone that can shed some light on this or point me in the direction of good materials to read!

I looked at one lot U could build on it but there is only a 5 foot path to haul material in.. :) and they want 300k for it.. 

Just keep thorough records of your expenses—materials, labor, permits, etc.