By the time he covered eviction costs, lost rental income, and re-renovated after tenant turnovers, any potential gains were erased.Seven years later, his properties had appreciated to about $130,000 each—a 62% increase on paper.

Recently, I conducted a cost segregation study on the property shortly after converting to a STR (converted June 1 2024), and I want to ensure I file my taxes correctly and legally given this change in circumstances.

.- Put Upward pressure on real estate operating costs: Increased costs for raw materials and supplies, and the likely increased costs for labor involved in many real estate related CapEx and maintenance projects signal the risk of increase in costs for real estate operators.If there is no impact on near-term supply, a modest slowing of inbound (illegal) migration, more reason to believe that the cost of many goods and services will increase, and real reason to believe that inflation triggered by something other than an increase in the money supply (namely the cost of specific goods and services that are NOT housing going up, which comprise the CPI) will force the Fed to raise rates, this, on the whole, is not good for real estate investment returns. 

View report*This link comes directly from our calculators, based on information input by the member who posted.

Meaning, if you take the money only, you would have depreciation recapture from your cost basis up to the original purchase price of the building (not including the land cost because it wasn't depreciable), plus a capital gain up to the insurance proceeds.Hope this makes sense. 

Renovations that truly add value-like modern kitchens, open floor plans, and energy-efficient upgrades are making the difference in selling faster and at top dollar.Financing & Interest Rates: The higher cost of borrowing has made tight budgeting more important than ever.

You will really need to look hard in order to find deals that make sense and you really need to take you cost of capital into account when doing your analysis.

What add cost should they expect?

Typical Project Management Fee for a GC General contractors (GCs) typically charge a project management (PM) fee of 10-20% of the total project cost.

Roll them all up and the averages are:purchase $154krenovate $47Ksell $232kThese are gross numbers, not including closing costs, borrowing costs, holding costs, licensing and permit costs, G&A, overhead, commissions, forward rate buy-downs, and lease-up fees, to name a few of the many expenses incurred.