Hi all,

First, yes, I am going to contact a CPA. I just want to see the general opinion of others to collect as much data as possible.

This will be our first rental. We moved out of our primary of ~10 years with the intent of turning it into a STR. The town requires a permit in which there is a waiting list and would take ~1yr+ for approval. They only approve a limited amount each year.

We have spent the past 2 months 'freshening' property to make it more desirable for a LTR and now have it ready to list. However, our STR permit was just approved.

Tourism is a little slower in the winter being a beach community so we are now confronted with the decision to stay with the LTR plan for consistent income over the winter or furnish and list it as a STR over the winter and into peak season next summer.

LTR Pro and Con:

Consistent income over the winter

Will be tricky finding a tenant for a short winter rental being unfurnished. Many local STRs list on Funished Finder as mid term/ winter rentals so we will be competing. We will need the tenant out by spring so we can furnish and update a few more things for spring/ summer.

No additional up front investment to get a renter in other than background check, etc.

STR Pro and Con:

Additional furnishing investment (~$40-50k) we will need a loan (interest only) for this. Complete house furnishing. 

I'm guessing since we have no experince in our market yet, but limited bookings over winter so it may be difficult to cover the mort, ins, taxes

Can take STR loophole deduction this year. We are pursuing the STR for the additional income but also for the W2 deductions. We a looking to reduce our taxable income.

Will need to do this ASAP; so furnish, list, and book by year's end

Will have to heat the place all winter with possibly limited booking

We are both W2, mid career, earners with just the standard deduction at the moment

We have a standard home loan, taxes, ins

Questions:

What would you do knowing what you know?

Will the tax benefits of LTR vs STR benefit us enough? Furnishing via loan now and paying it back at tax time? We will be the operator.

LTR for a while (1-2yrs) to generate enough income to cover operating costs and then furnish?