All Forum Posts by: Kerry Baird

@Vikranth Biradar, all the time spent looking for houses, talking with lenders, getting quotes…none of that time counts, until after you are officially under contract.  

I used DIY Cost Seg to do my study.  My numbers were similar to the ones mentioned above: $1.2M purchase and about $300k for bonus accelerated depreciation. I am probably not going to own this property for 5 years, and am awaiting CPA advice regarding using that accelerated depreciation.

My house, normally priced in the $888 range on VRBO, shows up on their Market Maker pricing at $23,148 or $28,735 a night.  I'm not sure what is going on, but that's a bit much.  I had a guest clue me in by asking if that was my "real" pricing.  No, no it isn't.  LOL

I am personally opposed to buying crappy homes in bad locations.  I really love a gentle fixer in a great location, such as we often find with a probate home.  3/2 single family home in an area with mature landscaping.  Outdated appearance, but good bones.  They often need new flooring and paint, but often can be rented without replacing the (outdated) kitchen.  I have found some gangbusters deals on probates.  

@Shawn Mcenteer, your last sentence is spot on.  

@Cody TuathaDe, you might not have seen the conversation started by @Alonso Noriega

My suggestion is that you get a HELOC or a fixed rate second mortgage on your property before you move out, so you garner the benefits of owner occupied rates. Keep a strong emergency fund.

The plan to move into the duplex and then out after a year or two, and do that again, is the strategy that my family has used.  

I'm also in the "put less down" and keep some back for emergency or down payment for the next property. If you can do this move in and rent out part strategy a few times, even up to 4 plexus that can be owner occupied, you will be out of the rat race faster and with fewer transactions than if you save up to buy one non-owner-occupied NOO SFR and then another and then another.

Yes, that means moving once every 12-24 months, but for a short and intense period of time. 

Food for thought.

@Jerry Callow, I bought a number of cash flow properties in another State, so those houses provide the monthly payment on the mortgage for my FL properties. The CF houses don't really appreciate much, and their job is to produce cash flow. The FL properties appreciate. I bought them on a barrier island where there is demand and very little supply, Their job is to appreciate. The TX + FL houses' cash flow propped up a new, expensive STR house while it was growing income as an STR.

In other words, I think you can make it work by strategizing your holdings.  

Also want to point out that big losses, year after year, can have the IRS saying our business is just a hobby…businesses are meant to make money every so often.  :D  Also, perhaps you have bonus depreciation or similar write-offs that can enable those to break even or product income.  

Welcome to BP, first off.  And secondly, that was quite the haul-off of stuff!  This was a steep learning curve, if this was a first deal.  The photo you posted looks terrific, with a nice finish.  As you said, doing the job the right way makes a big difference.  Are you going to do it again?

I will be watching this space.  My winter guests in Florida are almost all through VRBO, probably because I have older people who book far in advance, and the older folks seem to be on that OTA while the younger set are more likely to be on AirBnb and are more last-minute bookings (for me and my properties).

@Adrian Clapp, Thanks for posting the update for Florida with that recent bill.  It does change things up, and we need to keep an eye on legislation.  So many bills have been presented and declined to make it to law.  This one seems to have teeth.