I’ve been hearing from a lot of investors lately about how renovation costs keep sneaking up — whether it’s materials, labor, or even permit delays.

During my studies, I learned a lot about building design, materials, and project management, and now I’m looking forward to starting my career in the construction industry.In my free time, I enjoy working on small renovation projects, learning about modern architecture, and spending time outdoors. 

I'm sure it's different in different markets, but in my area there can be a wide range of price differences for the same materials and project.

It's been, and will continue to be, one of the stronger vacation markets on the east coast, and from a tax strategy perspective, I can still plan on bonus depreciation, which is material in my individual case.Thanks for any thoughts from those on the ground, or those with existing STRs in the market!

I am writing to seek assistance regarding a purchase I made a few months ago. I acquired the book "Real Estate by the Numbers" by J. Scott and Dave Meyer from the BiggerPockets bookstore. Unfortunately, I am unable to...

I can say confidently that the material participation hours do get prorated by when the property goes live so that is why many do it at the end of the year.Did you purchase your house before Sept 27, 2017?  

That means more cash flow, faster pay-back, and smarter reinvestment.What Is Cost Segregation & Why STRs BenefitCost segregation is the process of breaking down a property’s purchase price (or renovation cost) and reallocating portions of it into shorter depreciation lives (typically 5, 7, 15 years) instead of being lumped into the standard residential/structure life (27.5 or 39 years).For STRs (especially where average guest stays are short and you materially participate) this becomes even more powerful:It accelerates write-offs and frees up cash sooner.It helps you convert your property into an “active business” rather than passive income in the eyes of the IRS, making more deductions usable against other income.Personally I'm a realtor which makes it easy to gain "material participation" as I am classified as a "real estate professional"There are ways to structure a property that is managed by someone else and still qualify.

We put a row of material about 4 inches high to set them on.

You’d need to file a partnership tax return, materially participate, and ideally do a cost segregation study to accelerate depreciation, but since you plan to use a property manager, that likely wouldn’t work.

We're working on our 15th+ STR closing for the year - with several clients still hoping to invest AND materially participate this year!?