STR Investment Analyzer
Live AZ Co · Josh Hogan
(480) 369-2880
Short-Term Rental Underwriting & Tax Strategy
2132 N 63rd Place
Mesa, AZ 85215 · MLS #6930385
5 Bed / 3 Bath
2,717 SqFt
Pool
Golf Course
No HOA
$475K
Offer Price
$146K
Projected Revenue
23.2%
Cash-on-Cash
Deal Structure
Select Strategy
Property & Acquisition Details
Inputs
BRRRR Deal Structure
1
Purchase
Bridge loan
2
Rehab
$97K construction
3
Refi
Month 4 · Cash-out
4
Furnish
Design & launch
5
Revenue
Month 6 · STR live
Conventional Purchase
Cash Purchase
Revenue Assumptions
STR
Annual Operating Expenses
Investment Summary
Year 1 Tax Savings
$0
Cost Seg + Depreciation
Effective Cash in Deal
$0
After tax recapture
Cash-on-Cash Return
0%
Stabilized annual
Equity Created
$0
Purchase → ARV
5-Year Total Return
0%
Cash + Equity + Tax
Gross Revenue
$0
Year 1 projected
Net Operating Income
$0
0% margin
Annual Debt Service
$0
$0/mo
Net Cash Flow
$0
$0/mo
Deal Structure & Capital Stack
BRRRR
Sources & Uses
Capital
Cash-Out Refinance
Month 4
Operating Performance
Annual P&L (Stabilized)
Year 1
Monthly Revenue Seasonality
AZ Market
Arizona STR seasonality: Q1 & Q4 strongest · Summer trough Jun–Sep
Property Management Scenarios
Returns by Management Strategy
Scenarios
Portfolio Comp Data
2025 Actuals
The BRRRR Advantage
$200K cash + $97K construction from bridge. Refi month 4 returns $35.5K; STR live month 6. $46.3K/yr stabilized cash flow. $225K forced equity created.
STR Tax Loophole & Cost Segregation
Tax Strategy
Cost Segregation Breakdown
Bonus Depreciation
With material participation (100+ hours/year) and a cost segregation study, bonus depreciation accelerates deductions against W-2 or active income in Year 1.
Tax Savings Impact
Year 1
The STR Tax Loophole
Short-term rentals with an average guest stay under 7 days are not considered rental activity by the IRS. If you materially participate (100+ hrs and more than anyone else), losses become non-passive and can offset W-2, business, and investment income — regardless of your income level. No $150K AGI limitation applies.
2025–2026 Bonus Depreciation
Bonus depreciation is currently at 40% (phasing down from 100% in 2022). This means 40% of eligible short-life assets can be deducted immediately, with the remainder depreciated over their normal recovery period. Consult your CPA for latest rates.
5-Year Wealth Projection
Cumulative Returns Timeline
Projection
Primary Home vs. STR Investment
Your Home Equity vs. Deploying Capital into an STR
Comparison
See how your current home equity compares to the wealth-building potential of an STR investment.
Live AZ Co · Josh Hogan · (480) 369-2880
Projections based on portfolio actuals from comparable 5BR STR properties in Mesa, AZ. For informational purposes only. Consult your CPA and tax advisor regarding your specific situation.
Projections based on portfolio actuals from comparable 5BR STR properties in Mesa, AZ. For informational purposes only. Consult your CPA and tax advisor regarding your specific situation.