All Forum Posts by: Adam Graziano

I am having a hard time finding a good CPA that knows how to maximize the tax advantages of a short term rental business. I am located in the northern Virginia/DC area. Are there any recommendations out there? If not, what are some good 'test' questions that we can ask during a consult to see if the accountant knows this business or not?

I am researching purchasing a property to be used as a STR (page county, VA). I have been advised to purchase it as a second home before putting it into an LLC to do the renovations and listing it for rent. I plan to use platforms like Airbnb, VRBO, etc to market and rent the property.

Will I still be able to write off the expenses associated with the remodel if it is purchased as a second home??

Will there be any issues doing a cash out refinance to put towards another property in a year or so? 

this is my first attempt at a short term rental, and advice is appreciated.

Quote from @Jake Handler:

Congrats on your first purchase.  To answer your question adequately, I would need to know where in Virginia this is and who your target-tenants are.  For example, is this a beach home?  A lake home?  A row home in the city?  My advice would vary greatly depending on your goals with the property and having more clarity on the area.

I am looking in the front royal/luray area of Virginia. I'm looking to target the crowd looking to escape to the mountains for hiking, wineries, and visitors to shenendoah ntl park. The luxury tiny home/cabin type of vibe is what I am after. Just a couple bedroom property with some higher end finishes on a bit of land, ideally with a view. I would love to get 2-3 properties in this area pending the performance of the first one.

Quote from @Greg R.:

An LLC is not always necessary. Many investors don't put their properties in an LLC, but many do. For your protection you mainly need good insurance that covers STR uses, and umbrella insurance. That should be more than adequate for a newbie w/ a single property.

Thanks for the response. Ideally, this will lead to more properties in the coming years. They will also need to be remodeled after purchasing. I figured the LLC would help me keep all of the accounts and cash flow seperate from my personal funds. It will alo help with renovation write-offs once tax season rolls around. Are there any down sides to starting a LLC? I have heard that larger down payments are required, but I'm not 100% sure if that is true.

Hi everyone,

i am looking to get into the STR market by purchasing my first property in Virginia this winter.

On the finance side, I assume I will need to start an LLC. How will that effect the purchasing process? My down payment is ready, what are the steps I need to take prior to purchasing my first property to make sure I am protecting myself while not leaving any money on the table.

I am new to this, all incites and advice are welcomed and appreciated.