Does it make sense to buy the property first and then move everything over to the LLC or have it all set up first (foreign entity in CA) before buying the property(ies)?

The timing of the sale at $315,000 shows how combining a long-term hold with a flip can be a highly effective approach in the right market.

Time will tell!

Hello BP, I saw this in one of my FB groups and wanted to share this in the event you were affected - "I’ve worked as a full time licensed claims adjuster for years along with being a STR owner in Tennessee.

You have plenty of time.

Thank you for taking the time to respond!

@Freeman Schultz I typically buy what fits in the space first and then the unit that is on sale and has the best value after that.

They can ask you to serve notice so one unit (or both) are vacant at the time of possession, but if you agree to that make sure you have a large deposit and some of that is not refundable if the buyer backs out as you will need it to cover the lost rent.

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.

All contractors and all subcontractors need the SAME set of plans and it saves so much time not having to measure and re-measure.