All Forum Posts by: David Rutledge

They do not allow airbnb. We own a rental in Irvine and do monthly rentals at the moment. 

Hi everyone,

I wanted to get some feedback/thoughts on a short term rental strategy I am looking into.

We have 8 strs in TN that are doing very well. These are great but they are all in the Smokies a traditional vacation market so we are looking to diversify and move into some other markets.

We have quite a bit saved up from the cash flow and recent cash out refis. I do not want to go into another vacation market but rather a metro area with a more diversified economy again just to get into a different type of asset.

That being said I do want to continue to short term rent the next few properties we get at least in the first few years of ownership in order to increase cash flow to combat these higher prices and carrying costs before potentially converting to more passive long terms down the line.

Therefore I am looking for markets that 1) have a decent draw of visitors year round 2) have regulations that allow strs in some parts of the city 3) Are in growing cities in the west or south.

Below is a list of markets I have identified as potential places to look and I was hoping to get some insight from either other investors doing the same thing or agents/investors in any of these markets on whether this is potentially a good market to explore or not.

1) Salt Lake City (this is right at the top of my list due to its proximity to ski resorts, expanding of the airport and long term strategic business planning of the area but I have very little knowledge of this market)

2) Denver 

3) Phoenix (used to live in AZ and like the fact that the state of AZ seems to look favorable on strs)

4) Tucson (see above but lower home prices/potentially less appreciation)

5) San Diego/LA (these are attractive because of their proximity to my home in Irvine)

6) San Antonio (love that it is very close to the booming Austin and feel that this is a market that could see some real growth in the future)

7) Tampa/St Pete (I have always been very interested in this market for both short term and long term rentals)

8) Raleigh (have invested in Charlotte and love NC but again very little knowledge on this area)

Any insights or advice on any of this would be greatly appreciated. Thanks so much for your time. 

David

Yes I am thinking that a self study but be the best option in my situation.

Thanks so much for the insight. 

Thanks so much everyone. This is really helpful. 

I have heard of a lost of commercial buildings or large apartment complexes doing a CSS. I am looking to do this for residential homes purchased for under 350K. They are bringing in considerable income but the actual price of the asset is not much. I have read where there are online tools for a DYI CSS that may be useful for someone in my situation.

Does anyone have any knowledge or a potential resource you could point me to for a DYI CSS I can try to look into?

Thanks again all.

David

Also, does anyone know if you can cost a segregation in a year that is NOT the year you actually bought the property?

Thanks Sarah, I PMed you. 

Hi everyone,

We purchased 4 short terms rentals this year and have increased our income quite a bit in 2021. We have been considering looking into the option of doing a cost segregation study for tax benefit purposes.

Ideally we would like to file our taxes as soon as possible in the new year so we can get approved to purchase more property. For this reason I would like to avoid having to wait the 6 to 8 weeks it seems most third party companies need to complete the study. I would obviously also like to avoid the huge costs of a full blown CSS. 

I know some on here have mentioned trying to do this themselves but I know nothing about this and do not really want to go the DIY route when it relates to anything to do with taxes.

I am wondering if anyone knows of any other options or companies that can help do a CSS that are a little more affordable and could potentially be completed in a much shorter period of time. Our properties are in TN.

Any advice or insight would be greatly appreciated.

Thanks

David Rutledge

Thanks so much guys. I appreciate the insights. Excuse my ignorance but is there a resource on the site where I can access a list of CPAs?

Thanks so much again.

David

Hi everyone,

My wife and I have shifted our business to acquiring short term rentals over the past few years. We have always used a traditional CPA but with 8 short term rentals and 3 long term traditional rentals we are looking for a CPA with experience with STRs and RE investors in general to better align with our current tax situation and our future goals.

We live in Irvine CA and ideally we would love someone local but are also open to working with someone remotely. The bulk of our properties are in TN. I have tried a few local CPAs in this area but all have been unable to take on new clients.

I was wondering if anyone has any recommendations of a good CPA that have used that does have some background in STRs?

Thanks so much in advance.

David Rutledge