Input the numbers on any short-term rental you're considering and get the same cash flow, cost segregation, and Year 1 tax savings breakdown Brad builds for Lowcountry STR investors — instantly.
Property & Financing
Enter your numbers — results update as you type.
Purchase & Loan
$
%
%
yr
$
STR Income
$
Annual Operating Expenses
$
Beaufort County + town/district millage combined — varies by tax district. 249 mills approximates in-town Hilton Head Island; check your parcel's actual district on the Beaufort County Auditor's Tax Calculator and adjust. Investment and second-home property is assessed at 6% of fair market value under SC law, vs. 4% for an owner-occupied primary residence.
$
$
$
$
$
$
%
Cost Segregation & Tax
%
%
Furniture, fixtures, flooring, and tech typically land in the 5-year bucket; decking, hot tubs, and landscaping in the 15-year bucket. A real study — performed by a qualified engineer — pins down the actual split for your property. 30% is a reasonable planning estimate.
%
$
5-Year Projection
%
%
—
ANNUAL CASH FLOW (SELF-MANAGED)
—
EST. YEAR 1 TAX SAVINGS
—
YEAR 1 TOTAL RETURN
Without material participation, this loss is passive. Passive STR losses generally can't offset W-2 income — they can only offset passive income or carry forward. The tax savings figure below assumes the loss is fully usable against ordinary income. Talk to a CPA about the 100-hour, 500-hour, or substantially-all tests before counting on this.
Cash Flow — Self-Managed
Gross STR Revenue
—
Operating Expenses
Property Taxes
—
Insurance
—
HOA / Regime Fees
—
Utilities
—
STR Software
—
Guest Supplies
—
Maintenance Reserve
—
Net Operating Income
—
Mortgage P&I
—
Annual Cash Flow
—
Schedule E — Year 1 (with Cost Segregation)
Gross Rental Income
—
Deductions
Mortgage Interest (Year 1)
—
Property Taxes
—
Insurance
—
HOA / Regime Fees
—
Utilities
—
STR Software
—
Guest Supplies
—
Maintenance / Repairs
—
Cost Segregation Study Fee
—
Depreciation (bonus + 39-yr)
—
Schedule E Net (paper loss)
—
Depreciation Detail
Depreciable Basis (price − land)
—
Reclassified 5- & 15-Year Assets
—
Bonus Depreciation (Year 1)
—
39-Year Structure (Year 1 portion)
—
Total Year 1 Depreciation
—
Year 1 Total Return
Cash to Close (down payment + closing costs)
—
Annual Cash Flow
—
Est. Federal Tax Savings
—
Year 1 Total Return (cash + tax)
—
Return on Total Invested
—
Cap Rate (NOI ÷ purchase price)
—
5-Year Projection
Year
Revenue
Cash Flow
Tax Savings
Property Value
Equity
After Year 1, bonus depreciation is fully claimed — only the 39-year structure depreciation remains, so tax savings drop sharply in Years 2–5 (and may hit $0 once growing rental income exceeds remaining deductions). This is the expected result of front-loading, not a problem.
5-Year Cumulative Return
Total Invested (cash to close)
—
5-Year Cumulative Cash Flow
—
5-Year Cumulative Tax Savings
—
Equity at Year 5 (appreciation + loan paydown)
—
5-Year Total Return (cash + tax + equity gain)
—
5-Year Return on Total Invested
—
Equity gain assumes the property is held, not sold — it excludes selling costs, depreciation recapture (taxed up to 25% at sale), and capital gains tax, all of which reduce actual proceeds if you exit at Year 5.
Depreciation is a non-cash deduction — it reduces taxable income without a matching cash outflow. That's the mechanism behind the paper loss above, and it's what can make an otherwise thin cash-flow property generate a strong Year 1 total return for a high-bracket W-2 earner who materially participates.
Illustrative only, not tax or financial advice. Cost segregation studies must be performed by a qualified engineer to hold up on audit — the percentages above are planning estimates. Material participation, the at-risk rules, and the 14-day personal use rule all affect whether this loss is actually usable against W-2 income. Confirm every figure with a CPA who specializes in short-term rental taxation before making a decision.
Want Brad to run the real numbers?
Send him this property and he'll build the actual financing structure — rate, program, and lender — to match it, and connect you with a CPA who knows STR tax strategy.
This tool is for informational and educational purposes only and does not constitute tax, legal, or financial advice. All cash flow, depreciation, and tax savings figures are estimates based on the inputs provided and standard cost segregation / bonus depreciation assumptions under the One Big Beautiful Bill Act (OBBBA) — actual results depend on a professional cost segregation study, your specific tax situation, and confirmation by a qualified CPA. Mortgage interest is estimated using a standard amortization schedule and may differ from actual lender figures. Material participation, the at-risk rules (IRC §465), and the 14-day personal use rule can all limit or eliminate the usability of Schedule E losses against ordinary income — see our full STR investing guide for details. Brad Payne NMLS #2366717 · Empire Home Loans NMLS #1839243 · Equal Housing Lender · Licensed in SC, GA & VA. Not a commitment to lend. All loans subject to underwriting approval.