Policy loans are generally not taxable, as long as the policy stays in force.When you reinvest in a new property, consider a few key tax strategies to keep your returns optimized.

If and when it does become a problem for my community that we have too many people competing in the same market we will adjust to protect our community.

Quote from @Benjamin Kucera: It is a pleasure to be apart of this ever-growing community!

Lastly, mention your RE investment goals to people in your sphere of influence.

This would allow you to defer all of the tax and depreciation recapture and reinvest into multifamily using all of the tax you would normally pay.

I'm new to RE investing and I want to practice underwriting deals in my free time so I can better understand the process and be proficient at it when it comes time to actually getting a deal.

That means more of your cash stays in your business, not the IRS’s pocket.For many buyers in this market the ability to offset income and reinvest tax savings is a major advantage — and it strengthens your underwriting.Since STRs have strong appeal (friends & family groups, weekend escapes, high-end amenities) the sooner you position it as a business, the better your financial outcome.Your Step-By-Step Playbook for Cost SegregationHere’s a practical checklist to make cost segregation work for you in an STR:Buy/underwrite with tax strategy in mind: When you evaluate a property, include cost segregation as part of your operating model (not just nightly rate and occupancy).Engage a cost segregation specialist: You’ll want a qualified provider who understands STRs (they’ll allocate assets into proper shorter lives, document everything).Structure operations for “business” treatment: Track participation (guest communication, property maintenance, marketing) to lean into non-passive income treatment.Conduct the study early: Ideally in the year you take service (purchase or major renovation) so you front‐load benefits.Keep detailed records: Invoices, improvement costs, design/furnishing upgrades, hours spent managing.

This community has helped me a ton when I first started, and it’s awesome seeing more people jump in.

Hey everyone,My name is Saif, and I’m excited to join the BiggerPockets community. 

Hey everyone,My name is Saif, and I’m excited to join the BiggerPockets community.