Buying my first STR today!

Investor · Claremore, OK · Member since 2026 · 10 posts · 6 votes

Hey everyone. I posted a few days ago, thank you for all of the replys.

Im so new to this, and working backwards. I saw the house for sale, decided to buy to STR it, and I close today!

I have to paint and repair a few things. And I plan to have my children and I clean between guest stays.

I dont have an LLC. I plan to compensate my children for their time. How do I best document this?

I want to get the highest tax benefits possible, i know I need 100hrs of my own time, but do my children's time count towards my 100??

Also. If theres any real-estate CPAs in my area, I'm still looking for one. (NE of Tulsa)

Thank you for any and all help. P.s. I'm super excited and nervous right now.

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Jules Aton

MD/DC · Member since 2024 · 1k+ posts · 1k+ votes

16h

Congratulations!

2 Reply

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Trent Reeve
Atlanta · Member since 2022 · 706 posts · 634 votes
18h
im no CPA, but i do not believe your childrens time counts for you. And i hear that the IRS is really starting to crack down, so make sure you document your hours very well.
1 Reply
- Crystal Crow
  OP
  Investor · Claremore, OK · Member since 2026 · 10 posts · 6 votes
  18h
  Thank you. Can i just use an excel sheet that has "name. Start time. Stop time. Work done"??
  0 Reply
- Trent Reeve
  Atlanta · Member since 2022 · 706 posts · 634 votes
  17h
  I would search in here and also there are a few good facebook groups for STR's. There have been suggestions for apps and other things for tracking hours, but I cannot remember them right now.
  1 Reply
Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
18h
I would highly recommend @Christopher Tile @Christopher Tile @Christopher Tile
He is in NY but I am in FL and he is my CPA. Very knowledgeable about taxes and RE/STR specifically. Congrats and good luck!
[email protected]813-563-0877
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1 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
18h
Congrats!
You should start interviewing local CPA's.
Do you have a nearby Real Estate club you could join and get recommendations from?
1 Reply
- Crystal Crow
  OP
  Investor · Claremore, OK · Member since 2026 · 10 posts · 6 votes
  18h
  Oh. Im not sure. I will ask my realtor. Thank you
  0 Reply
Christopher Tile
Accountant · Long Island, NY · Member since 2021 · 182 posts · 144 votes
17h
Thanks @Andrew Steffens for plugging me in.
@Crystal Crow A few quick answers for you:
- To pay your kids, the correct way to do it is run payroll. Definitely worth the research/talking through with a CPA.
- Your kid's hours do not count towards your material participation
Also, nerves are a good thing! This isn't easy for anyone, but nothing is ever as bad as it seems. Once you get the first few bookings, you'll be fine!
1 Reply
Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
16h
Congratulations!
2 Reply
Michael K GallagherBusiness Member
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
15h
@Crystal Crow welcome to the forums and I love that you just jumped in and are figuring it out, bit congrats! that's something I'm working to get a bit more of in my life.
[email protected]614-362-2231
1 Reply
- Crystal Crow
  OP
  Investor · Claremore, OK · Member since 2026 · 10 posts · 6 votes
  6h
  Welp. I hope it works out for me. I tend to fret. But while i fret, i work bit by bit towards my goal. Sometimes i laze, sometimes i scramble. Its not the most organized. 😅
  0 Reply
Diana Khan
Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 300 posts · 112 votes
15h
Quote from @Crystal Crow:
Hey everyone. I posted a few days ago, thank you for all of the replys.
Im so new to this, and working backwards. I saw the house for sale, decided to buy to STR it, and I close today!
I have to paint and repair a few things. And I plan to have my children and I clean between guest stays.
I dont have an LLC. I plan to compensate my children for their time. How do I best document this?
I want to get the highest tax benefits possible, i know I need 100hrs of my own time, but do my children's time count towards my 100??
Also. If theres any real-estate CPAs in my area, I'm still looking for one. (NE of Tulsa)
Thank you for any and all help. P.s. I'm super excited and nervous right now.
@Crystal Crow, congratulations on closing! I've worked with new investors who felt like they had to set up an LLC right away because they thought it was part of getting the tax benefits. I would not rush that piece just because you are starting an STR.
The tax side and the ownership side are really two different conversations. I'd talk with the CPA about the hours and paying your kids, and separately look at how you want to own the property, your insurance, and the local STR rules. If you decide later that an LLC makes sense, I'd have the title, loan, and insurance reviewed before changing anything.
I’d be glad to stay connected, @Crystal Crow. You’re asking the right questions early, which is much easier than trying to fix the setup after everything is already running.
1 Reply
- Jane Ukamaka
  Virtual Assistant · Member since 2026 · 2 posts · 0 votes
  11h
  Congratulations Crystal
  0 Reply
Matthew Tregoning
Real Estate Consultant · Melbourne, FL · Member since 2019 · 185 posts · 107 votes
12h
Congrats Crystal! Once the repairs are done, spend a night there before opening the calendar. Cook, shower, sleep in a guest bed. You'll catch little stuff that's easy to miss when you're just in and out working.
2 Reply
- Crystal Crow
  OP
  Investor · Claremore, OK · Member since 2026 · 10 posts · 6 votes
  9h
  Oh. Such a good idea. Thank you
  0 Reply
Min JangPro Member
Accountant · Member since 2026 · 5 posts · 2 votes
10h
Congrats on the closing. Before focusing on the 100 hours, I'd confirm which material participation test you expect to meet and whether any projected STR loss would actually be usable on your 2026 return. Paying your children and tracking your own participation are separate issues, so I'd have both reviewed before setting anything up. We work with rental owners remotely and may be able to help!
1 Reply
- Crystal Crow
  OP
  Investor · Claremore, OK · Member since 2026 · 10 posts · 6 votes
  9h
  Ok. Thank you. I assumed that children working with me would be the same as spouse working with me (they both fall under the 100hrs). But im glad i asked, because it sounds like i was wrong. Hahaha 😔
  0 Reply
Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
8h
Children's time would not help you. I can send you a spreadsheet that will help you document material participation for STRs. Feel free to pm.

congrats on your purchase!
[email protected]
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2 Reply
- Crystal Crow
  OP
  Investor · Claremore, OK · Member since 2026 · 10 posts · 6 votes
  5h
  Hey Aaron, i'm using the free BP. I requested a "connect". P.s. this is all new to me and i didnt watch the "how to use BP forum" video. 😅
  0 Reply
Cristal Smith
Member since 2022 · 3 posts · 1 vote
5h
Congrats!
1 Reply
Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
5h
Wish you much success!
0 Reply

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