All Forum Posts by: Lily Tang

@Jason Malabute yup 

Hey Myka - thanks! Yes, understand average stay must NOT exceed the 7 day rule so very much considering that to meet the STR tests and not mid-term rental. My goal here is purely going down the short term route for 2025 tax year to utilize bonus depreciation + cost seg on Year 1, and potentially convert to a mid-term/long term rental 2026 and onwards.

Currently in the market shopping for a home that has Airbnb / STR potential to be put in service for 2025. I will be materially participating to qualify for the 100hr+ rule to claim a few of the tax benefits through cost segregation/bonus depreciation to offset my current W2 income. This home should also have good mid-term rental and long term rental to maximize flexibility after 2025 tax year. The tax savings would be significant to offset my W2 and I'm already running numbers to make sure future years cashflow can offset or be higher than monthly costs. Located in Seattle.

I'm planning to fund the purchase through cash for 20% down / closing costs but plan to use HELOC on existing primary home (based in another city) to fund STR related furnishings & upgrades. My understanding is I can deduce the interest on HELOC based on its usage for STR.

I'm very new to this and have always been passionate about RE investing & going down RE route. Anything else I need to consider? Also looking for a RE-focused CPA if anyone has recommendations.

I'm also building out a financial model to model this out - let me know if an existing template is out there somewhere!

Currently in the market shopping for a home that has Airbnb / STR potential to be put in service for 2025. I will be materially participating to qualify for the 100hr+ rule to claim a few of the tax benefits through cost segregation/bonus depreciation to offset my W2 income. This home should also have good mid-term rental and long term rental to maximize flexibility after 2025 tax year. The tax savings would be significant to offset my W2 and I'm already running numbers to make sure future years cashflow can offset or be higher than monthly costs. Located in Seattle.

I'm planning to fund the purchase through cash for 20% down / closing costs but plan to use HELOC on existing primary home (based in another city) to fund STR related furnishings & upgrades. My understanding is I can deduce the interest on HELOC based on its usage for STR.

I'm very new to this and have always been passionate about RE investing & going down RE route. Anything else I need to consider? Also looking for a RE-focused CPA if anyone has recommendations.