The rehab number looks great if it’s mainly cosmetic and you’re handling it in-house — huge advantage there.

It consists of two components: 12.4% Social Security tax and 2.9% Medicare tax.

Understanding the process and different components is key.

They’re putting $490 million into retooling the plant and creating 800 full-time jobs.To support it, GE just awarded $150M+ per year in supplier contracts across ten states—plastics, steel, aluminum, castings, components—with $40M+ landing right here in Kentucky.And it isn’t a one-off.

There are many many others but that is just a low hanging fruit component.

Two main buckets: the building itself and capital improvements.

There are 2 components that dictate breakeven or better: value add and/or creative rental strategies.   

Same for all the major components of the home that wear out: windows, siding, finishes, driveway, appliances, mechanicals, sewer line etc.

The costs are the costs—foundations, lumber, and core building components do not get cheaper just because it is an entry-level product.

Yes, you can cost-seg only the STR portion, but you’re not limited to only that.You’re allowed to run a cost segregation study on the entire property even if only part of it is used as a short-term rental.The key is allocation.A cost seg breaks out the components of the whole building.You then allocate depreciation between:The STR portion (non-passive if you materially participate)The LTR portion (passive unless you qualify as REPS)So you’re not restricted from studying the whole asset.You’re just restricted in what losses you can use depending on participation.2.