All Forum Posts by: Nancy Bachety

Thank you Nick. It’s as expected, I suppose, given the times. Leaving us in a tough spot though. We set aside funds to pay and will be submitting a time log shortly. Any insight or advice on a strong time log, and is travel time to a property allowed? 
@Joe Martella Good point. Something seriously needs to change. It seems to me the computer picked up our income and REP status and just mailed us out a letter. 

Love the beach and the numbers. 

We bought a condo here 10 months ago and it is a high performer, year round. There are several ocean front options and they all seem to be str friendly with the exception of homes and condo's in the southernmost end, referred to as the Plantation. Ours is right next to the Ritz and near the Omni, next to the plantation. Both host conferences and weddings. We attract overflow and guests seeking to extend their stay, or as an alternative, and folks from across the country seeking the beach and old Florida charm for a vacation or getaway. 

Our HOA is very str friendly. My husband got on the board easily too and several other board members own and operate str and use them themselves too. Top notch resort. We looked all over with a handpicked boutique realtor.

Look carefully as the Island is small but has different vibes depending on where. 

Good luck. Green light.

Update: spoke to IRS rep at 7 am. Was told no one was assigned this case (yet), she didn't have authority to remove penalties, and to upload our time logs. From what I read, travel time to out of state properties doesn't count, only time spent working. Still, no one has been assigned our case. What are your thoughts on whats going on at the IRS and what can we expect? 

Thank you again for your generosity, again and again. 
We were recently sent a bill from the IRS from our 2019 return. That year we earned in our two W2's a record $240k +. We also claimed a legitimate REP status. (I retired that year, and hubby is retired but did consulting.) IRS went straight for additional owed taxes, about $15k, for disallowed real estate losses. We own and manage 7 properties, LTR and STR. They didn't ask for any logs, records or receipts, or any documentation. There is no agent's name, no one to speak to, nothing. We feel we have no alternative but to comply as interest and penalties are accruing.
What are your thoughts on this, based on your experience in this COVID world when federal IRS agents are still working from home 80% of the time?

Either one, as long as the numbers work. Location matters. Must be a cabin, definitely. 

You’ve made a lot of things very clear. Best of luck in getting the help you came asking for. Clearly. Good night.

Try selling a few more houses and investing in the market you're familiar with in Portland. Learning how to self manage on your own from a distance is even harder then trying to get advice from seasoned STR owner/investors on BP, especially when your back is up and your buttons are pushed. It's nothing personal but because so many questions like yours are asked repeatedly, the answers are right here in the very same forum you posted in. Due diligence also means do your part. Btw, what did you find out when you searched Airbnb listings and Zillow?

It’s easy to search online for each township’s regulations on short term rental regulations. Village of Babylon bans them but other towns might not, especially where they’re common and have strong foundations like in Towns of Southhampton, East Hampton and fire island.  But you’ll need to do your due diligence. Then it’s a matter of affording a house and analyzing your occupancy and rates. The most important thing is researching the regulations and understanding they can change at anytime. 

Use the search box and type in " STR deal using the calculators?"

I would say yes, you are. Go and increase your base price and your minimum by 10% to start.