All Forum Posts by: Ian Tyndall

I think it is linear and scales with the purchase price. 

I tend to hear that luxury properties are more in demand and insulated from market fluctuations better than lower range properties. If the returns are all relative, I would go with a single property to minimize management complexity. There are some risk trade offs like “all eggs in one basket” versus fewer turnovers and guest liabilities and consumables. 
My personal advice would be to focus on the highest end of the range that is affordable 

I had the same question about finding castles! 😀

Steve,

I have issues with contractors skipping out on jobs with funds as well. In my case I received a judgement but the guy doesn’t have any assets to pay. I can check back every couple of years to see if I can garnish anything from him. 

On thing you could for the furniture if you don’t include it in a sale is contact and estate auction firm. They will come in and sell anything not bolted down. They take the photos, descriptions, and run a timed auction sale. Once the sale is complete they have one to days for pick up that they will coordinate and oversee. Might be a good option for you. 

Quote from @Todd Goedeke:

@Ian Tyndall have you never had a family gathering, anniversary, birthday party, baby shower in the neighborhood. I m sure there are plenty of parties where more than 16 people attend. 
Bah hum bug!

Sure, but not every weekend. We will come over to your house!
😀

It will be interesting to hear what others have to say, but I do not allow for any events that push beyond the nightly limit of guests. 

My homes are in residential neighborhoods and having 30 people show up is not going to go over well with the neighborhood. Even if it is for a 1 year old birthday party. All the cars and people walking around the house will draw unwelcome attention. 

Nancy,

I have purchased 3 of 4 STRs that were furnished. I personally put a premium of my time on these but don’t communicate that to the sellers. In every case I end up redesigning the property and replacing stuff, but it is a lot easier than starting from scratch. I budget about $8,000 per room, so getting everything thrown in to start is a good way to save some money and time. If the house is really well designed, then you can add in more. 

What I have typically done is just add a Personal Property Bill of Sale for all possessions as seen in the MLS photos for $1.
On one property we reduced the purchased price but did a $15k bill of sale given there was a lot of design and upgrades that went with the house. This helped with our lender at the time. 

Feel free to send me a direct message if you specifics of your deal that you would want a second opinion on, and I would be happy to take a look. Good luck!

I am currently shopping in Myrtle Beach. I love it gets two votes: North and South Carolina’s market picks! 
😀

Quote from @Jordan Elledge:

Hello All,

I know with the One Big Beautiful Bill "OB3", the depreciation has gone back to 100%. I am having a hard time finding a clear answer for my situation. I purchased a 2bd 1ba cabin in June 2024. We had to do a good amount of work to get it up and running as a STR. It has all new appliances including a new furnace. We filed our 2024 taxes, and did get some of the depreciation.

Can you do a cost segregation in the year after you purchase? If so, would it require me refilling all of my 2024 taxes? Also what depreciation percentage would I be allowed to capture?

Thanks,
Jordan Elledge

When was it put into service? 2024 or 2025? That is an important question. You can still do a study, but the bonus depreciation rate will be different based on the answer. I will defer to the experts based on your “in service date”

Hello!

My son will be attending ASU phoenix downtown and I am looking long term at getting a condo downtown. He will be in university housing for another year and a half. Are there any condos downtown that allow STRs with stays under 7 days?

Thanks!

Who staffs these inspector positions? Do they report to Planning Department? 
I can only imagine the poor incentives here to make this an effective process.