Need to buy STR by end of the year...

[Erica Morrison]

I received a lump sum of money this year from a small business I sold. I was told by my CPA that I should purchase an STR and do a cost segregation to offset the taxes I will pay on this money I received. I need to have it done by the end of the year and I am starting to stress! I am thinking about purchasing a property that is currently already an STR and am looking at Pinetop/Lakeside. My budget is around 650k. Is there anyone that is already in this market or that can provide any advice to my situation? Are there any realtors that might be willing to chat to discuss this area? We really like the idea of being in a mountain/cabin area, but I worry about being able to find vendors (cleaning, repairs, etc.) as there doesn't seem to be too many STR's in this area to compare to. Am I barking up the wrong tree? I live in CA. Thank you for any advice!

[Nicholas L.]

@Erica Morrison

Hi Erica. I (1) don't invest in STRs, and (2) don't know much about you, but I always get nervous when people propose buying an STR solely for tax reasons. And I think it's kind of crazy that a CPA would "tell you" to buy an STR... was that just one option of several he gave you?

So I'll ask... are you otherwise interested in owning and operating an STR?! What if you rush and buy a dud? STR is ruthlessly competitive right, now so losing money operating it will more than take away the tax savings...

We've just seen several posts here in the forums here from folks who (1) bought in this price range, (2) couldn't get enough bookings to offset the monthly costs, (3) started losing money, and then (4) couldn't get their sale price... making them really stuck.

Just trying to watch out for your capital here... if you are otherwise passionate about STR operation or have been wanting to buy a vacation property for years, great. But I did not see that in your post.