All Forum Posts by: Fulton Abraham Sanchez

@Evan Fogle, hi. Most lenders won't issue a HELOC directly to an LLC, since they typically require the property to be in your personal name. Some investors temporarily transfer the title to qualify, then deed it back to the LLC after funding. There are also a few portfolio lenders that work with LLCs, though rates are usually higher. It's important to structure this from both a tax and liability standpoint.

@Pavan K., hi. Finding the right CPA goes beyond firm size or Google reviews, it’s about experience with real estate investors specifically. Look for someone who not only files returns but also understands strategies like depreciation, cost segregation, and structuring entities to protect you as you grow. Many of us on here work with clients across states virtually, so don’t feel limited by zip code. 

Start by interviewing a few CPAs who are active with real estate clients, ask how they’d handle your situation, and see who communicates clearly. The right fit is usually the one who can both advise and execute.

@Sim Xing, hi. That’s definitely a unique situation. Since the property generated rental income for most of the year, you’ll need to report it as such on your tax return. However, whether you can use cost segregation depends on how the IRS views your intent and use of the property going forward. If your long-term plan is to occupy it as a primary residence, cost seg usually isn’t available, it’s designed for investment property. If you keep it as a rental, then it could make sense, but you’ll want to weigh the benefit against the complexities of partial-year use. This is one of those cases where sitting down with a real estate-savvy CPA is critical to map out the best filing strategy.

@Jackie Smith, hi. House-hacking with an STR can work really well. Since your friend will live in one unit, you could likely qualify for primary residence financing, which usually means better rates, but lenders generally want the property in personal names first. Some people set up an LLC after closing for liability and ownership clarity, though that depends on lender approval.

On taxes, both of you could qualify as materially participating if you put in the hours and track them. STRs follow different rules than long-term rentals, so it’s smart to plan ahead.

Hi @Yusuke Koike, Owning out-of-state property can have different implications depending on whether you title it personally, under your Illinois LLC, or form a Texas LLC. The right choice depends on a mix of liability protection, state filing requirements, and how you want the income taxed.

As a CPA working with many investors across multiple states, I’d recommend reviewing your long-term goals before deciding.

@Brandon Garcia, hi. Congrats on your first rental! TurboTax can handle a simple rental, but once you add depreciation, expenses, and long-term planning, a CPA can usually help you maximize deductions and avoid mistakes. Even one property can open up strategies that software won’t flag for you.

If you’d like, I can walk you through how to structure your filing and what you can and can’t write off as a landlord. Feel free to DM me or reach out to my e-mail. 

@Steve Williams, hi. I have a contact who may be able to help with your trust formation. Feel free to DM me or send me an email if you’d like an introduction.

@Bob V.,, hi. Location is no longer an issue as long as your CPA is available via email, text, or phone call. Make sure you reach out to a real estate-savvy CPA, that’s key.

Best of luck, and keep an eye on the profiles available here in the BiggerPockets forum.

@J Giraldo, hi. Great move looking into STRs with a cost seg and bonus depreciation angle. If the property qualifies and you materially participate, the depreciation can definitely help offset W-2 income. The key is structuring it right and documenting hours. Lots of investors are using this strategy successfully.

@Bob V., hi. Bonus depreciation isn’t limited to short-term rentals—it can also apply to medium-term rentals, provided the property qualifies as a business asset and you use a cost segregation study to break out components. The key factor is whether the rental activity is treated as a business vs. passive investment, and that often comes down to material participation and how the property is used.