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.

That's another thing I have looked into recently, but the MF RE seemed like a better option assuming a hold period of > 10 years.I did not know about the CA fair plan - that's good to be aware of and I will keep an eye on it.Thanks for the advice you give at the end of the post concerning wise paths to take. 

Being out of state, your property can start falling apart without eyes on it, so choose wisely. 

@Wade WisnerHey Wade, with your experience, it sounds like you have a great eye for undervalued opportunities.

An in-house team allows us to work on a rolling backlog of non-emergency repairs such as seasonal work while responding to tenant requests and performing yearly inspections, which helps us get ahead of potential issues and keep an eye on the condition of each property. 

Distance flips can get tricky fast, especially when you can’t keep an eye on the work.

That can make the price tag easier to swallow and widen your buyer pool fast.You’re doing the right thing by reaching out — this is one of those listings that needs the right eyes, not necessarily a lower price.

I will keep an eye on local rental demand and property condition, especially since FHA has more strict appraisal requirements.

Quote from @Sacramento Juarez: Quote from @Bobby Seegmiller: I consider myself a savvy investor, wrote a ebook on foreclosures, sat down at lunch and looked Tom in the eyes, been to his home, analyzed the business, reviewed the technology and CRM, chatted with their closers and am unfortunately in the same boat as all of you.

It turns every vendor into my eyes on the property.