All Forum Posts by: Luis C.

Hi Zachary. Midterm rental rents for no less than 30 days but shorter than a traditional lease (1 year). I am a bit confused now, since there is this other post here which mentions I can.

Hello Bigger Pockets Fam! I finished a new built ADU in November 2023. I also fully furnished it and had it listed and rented as a midterm rental. I also live in the primary home and this is the first rental I own. I want to be prepared talking about tax strategies with my CPA and I have a few questions.

1.Can I take bonus depreciation on the ADU? And can I use cost segregation?

2.Do you have to be a Real Estate Professional to take these deductions.

3.Does a cost segregation analysis need to be done by a professional?

Hello Bigger Pockets! Does anyone have tips on listing a detached ADU or back house? Some facts about the ADU: new 2023 build behind primary home, own property address, separate electric and gas meter, own private entrance, and it has it's own parking space in the front drive way of the primary home. My greatest concern is that I have it listed as a home or SFR, however, should I describe that this is a back house in the property description? I would think there would be less interest if it is listed as a back house.

I am currently in the process of building a detached ADU in LA county and want to estimate the possible rent. In the bigger pockets Rent Estimator tool, it asks for the structure type. Would the detached ADU be considered a home or other? Thank you in advance!

 Rick, thank you for the valuable insight! 

Dan thank you for your valuable input. I was not aware of the valuing of ADUs. I bean construction in March and if all continues to go well, the ADU is to be finished by late August/early September. I will definitely contact my lender. Again, thank you for your input!

I recently bought a 3 bedroom and 1 bath home with about 1100 sq. ft. It also has an attached 1 car garage that is about 380 square feet. I am currently building and ADU in the back yard that will be about 900 sq. ft. It will be a two bedroom and 1.5 bath unit. Once the project is done I would like to take advantage of appreciation and begin executing the BRRR strategy. With a cash-out refi I am not sure which would be the better investment: Option A build a JADU in the attached garage, or option B invest in another property? What are things to consider when making such a decision? Currently I am living in the main home but do not see my self living in it for more than 5 years. My long term goal is to keep the property as a rental property. Also, if I opt for option A, could I refinance once again or is it unlikely?