🔥 Uncle Sam's Eyeing Your Equity: The Tax That Could Wipe Out Your Equity

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In nearly all markets we operate in, we booked more nights on our owner’s calendars than other property managers. Get a personalized income estimate.

Hello STR Scout Members,

🔍 Urgent Tax Proposal Alert: A new tax on unrealized capital gains could significantly disrupt the real estate market.

🏡 Hottest STR Deals: 29 new STR deals across 12 markets.

📰 Trending News Nuggets: Stay informed on things that matter for STR investors.

Thank you for being a valued part of our STR investor community.

Kind regards,

Andy Thoms
STR Scout

😎 Be cautious with those flashy cash-on-cash projections from STR data companies; there's a lot of noise in cash-on-cash projections, and not everything you see is reliable. Always do your homework!

TOGETHER WITH VACASA

While market dynamics have shifted, independent research from Key Data reveals that Vacasa outperforms other property managers in filling your calendar.

In nearly all markets we operate in, we secure more nights on our owners' calendars compared to other property managers.

On average, a Vacasa owner enjoys 33% more guest bookings than our competitors.

Discover how much rental income you could be earning. Don’t leave money on the table—get your personalized income estimate today. You have nothing to lose and potential cash flow to gain.

Stunning Montana Mountain Estate on 5 Acres with Amazing Glacier Park Views

🏡 $1.85M | Whitefish, MT: Spectacular 7BD, 4BA estate, 4850 sqft, amazing Glacier Park views!

• Stunning 360° Mountain Views of Glacier National Park & Whitefish Ski Resort!

• Spacious mountain estate in the highly desirable 6+ bed STR category for CASH-FLOW!

• Featuring luxurious finishes, GAME ROOM, Outdoor Living, & space to add ADU & more!

• AirDNA projects over $325k in annual revenue in the highly desirable 6+ bedroom property.

View Property Details 
STR Agent: John Hayes
Text or Call: (850) 375-4113
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FSBO | OFF-MARKET STRs

$192K | Akron, OH: SFH in Highland Square with $36K annual revenue. Recently updated, easy cashflow, and low barrier to entry. Motivated seller. View Post

$350K | Sheffield, AL: Renovated 3BD, 2BA home designed for Airbnb. Includes exterior cameras, electric front door locks, and pool house. Option for fully furnished. View Post

$450K | Chattanooga, TN: 2BD, 2.5BA Southside STR with transferable permit. 2023 income of $59.6K at 92% occupancy. Garage, off-street parking, no HOA. Fully furnished. View Post

$650K | Joshua Tree, CA: 2.5-acre STR property with 100% occupancy and $130K projected revenue for 2024. Overlooks Joshua Tree National Park. Fully permitted with power and solar. View Post

$785K | Louisville, KY: Renovated 3BD, 2BA STR on the Ohio River. Previous STR income of $70K/year. New deck, updated kitchen, and furnished. Mix of STR and long-term rentals. View Post

ACTIVE STR LISTINGS 

$105K | Mountain Home, AR: New 1BD, 1BA cabin near Lake Norfork access points. Never lived in, with new appliances, HVAC, and luxury vinyl plank flooring. Ample parking for boat/trailer. View Post

$115K | Nancy, KY: Cozy 1BD, 1BA cottage on 1.369 acres near Lake Cumberland. Features 2 loft areas, fire pit, and a concrete parking pad with septic and 30 AMP hookup for a travel trailer. View Post

$175K | Sevierville, TN: Newly built wood cabin on 0.72 acres with a huge deck and private driveway. Brand new septic. Fully furnished and ideal for vacation rental income. View Post

$199K | Kaunakakai, HI: 1BD, 1BA ocean view condo on Molokai’s east end. Fully furnished and turnkey. Grossed $38.5K in 2023. HOA includes utilities. Near beaches and water activities. View Post

$200K | Panama City Beach, FL: Fully furnished and rental-ready studio projected to earn $25K-$30K GRI. Updated with quartz countertops, LVP flooring, and custom shelving. Prime location. View Post

$315K | Bartlett, NH: 2BD, 1BA condo at Linderhof Resorts with mountain views. Open-concept design, modern kitchen, and patio. Fully furnished with strong STR history. Near ski resorts and attractions. View Post

$329K | Jay, NY: Renovated 2BD, 1BA home on 0.90 acres. Modern design with a sauna and hot tub hut for relaxation. Close to skiing, hiking, and recreational activities. View Post

$325K | Bartlett, NH: 2BD, 1BA end unit condo on Linderhof Golf Course. Fully furnished, recent updates, new kitchen, and AC. Strong STR history. Near ski resorts and Storyland. View Post

$420K | Austin, TX: 3BD, 2BA 1,225 sqft ranch home with strong MTR/STR performance, earning $5K+ per month. Large fenced backyard. Available fully furnished. Owner financing with 20% down. View Post

$420K | Davenport, FL: Fully furnished 4BD, 3.5BA townhome in Solterra Resort. Turnkey STR investment near Disney. Features granite countertops, private pool, and resort-style amenities. View Post

$539K | Port Bolivar, TX: 3BD, 2BA elevated beach retreat near the beach and The Ranch Golf Course. Features an expansive balcony, open design, and luxurious kitchen with quartz countertops. View Post

$590K | Kissimmee, FL: 5BD, 4BA fully furnished vacation rental near Disney. New roof (2019), A/C (2021), and water heater (2023). Updated kitchen with granite countertops. Private screened-in pool. Prime location close to attractions. View Post

$680K | Shelbyville, KY: 4BD, 4BA 2,411 sqft duplex on the Kentucky Bourbon Trail. Turn-key STR with $83K gross income over the past 12 months. View Post

$695K | Bakersville, NC: Historic 2BD, 2BA 2,978 sqft home on 3.43 acres. Former mill, now a unique STR. Original water wheel, 3 levels, near Loafers Glory Dam. 1 hour from Asheville. View Post

$700K | Cape Coral, FL: 2021-built 3BD + den, 2BA Gulf access home with pool. Features boat dock, lift, and canopy. Prime location on Yucatan Pkwy. View Post

$750K | Broken Bow, OK: Luxurious 3BD, 2BA cabin in Kaniatobe Trails. High-end finishes, spacious back deck, and a stunning master bath. Close to all Hochatown attractions. View Post

$830K | Sandbridge, VA: STR-approved 4BD, 3BA penthouse condo with $60K+ YTD income. Fully furnished, large balconies with sunset views. Condo fees cover 3 pools, hot tubs, rec room, and utilities. View Post

$850K | Jacksonville, FL: 4BD, 3BA brick home with heated saltwater pool on 0.36 acres. Updated kitchen with quartz countertops, vaulted ceilings, and lush landscaping. Located on a quiet dead-end street near San Marco. View Post

$1.219M | Kihei, HI: Top-floor 1BD, 1BA unit with ocean views, vaulted ceilings, and loft. Modern upgrades, large lanai, resort amenities, and prime location. View Post

$1.595M | Sevierville, TN: 6BD, 6.5BA indoor pool cabin earning $230K-$270K+ annually. Fully furnished and turnkey, with stunning mountain views and luxurious finishes. Accommodates 26 guests. View Post

$1.850M | Whitefish, MT: 7BD, 4BA estate on 5 acres with panoramic mountain views of Glacier National Park. Features 3 living spaces, exposed beams, and a bonus room. Near Whitefish Mountain Resort. View Post

$2.200M | Stillwater, NY: 7BD, 4BA waterfront home with pool house on Saratoga Lake. Turnkey with modern kitchen, saltwater pool, and dock access. Near Saratoga Race Track. View Post

$2.850M | Gulf Shores, AL: Gulf-front 6BD, 6.5BA STR with $340K annual income. Beachfront, Gold-fortified, with private pool and elevator. Strong bookings even in shoulder season. View Post

Uncle Sam's Eyeing Your Equity: The Real Estate Tax That Could Wipe Out Your Equity & Wealth

What’s Happening?

There’s a new tax proposal being floated—a 25% tax on unrealized capital gains.

While it’s currently aimed at the ultra-wealthy, those with assets of $100 million or more, the reality is that it could eventually impact a much broader group, including everyday real estate investors.

This type of tax, while well-intentioned, has the potential to ripple through the entire real estate market, leading to significant and unintended consequences.

Who Will Ultimately Be Impacted?

While the tax is initially focused on the wealthiest individuals, history and common sense suggest that its reach will likely extend over time. This means middle-class real estate investors—those who own a few rental properties or are saving for retirement through real estate—could find themselves facing new, burdensome taxes.

If you’re forced to pay taxes on the increased paper value of your properties, even though you haven’t sold them, the financial burden could be severe, potentially forcing many investors to sell properties to cover these taxes.

Why It Matters?

For real estate investors, this proposal poses significant risks. The very idea of taxing unrealized gains undermines the fundamental principles of investing. If large investors are hit with this tax, many may decide it’s time to bail from the market.

The result? A wave of forced selling that could flood the market with inventory, leading to pricing volatility and sharply driving down property values.

This could create a downward spiral where the value of all real estate drops, not just the properties of those targeted by the tax.

Other Negative Implications

Beyond the immediate financial burden on individual investors, the proposed tax could have far-reaching effects on other sectors, like technology.

The tech industry thrives on innovation and investment, which are driven by capital accumulation and long-term growth. A tax on unrealized gains could discourage investment in high-growth tech startups, as investors may be less willing to commit capital if they face heavy taxation on potential future gains that haven’t even materialized.

This could lead to a brain drain, where thought leaders and innovators in the tech sector choose to set up their business in freer societies that offer more favorable conditions for starting and growing businesses.

The departure of these innovators would not only weaken the tech industry but also reduce the overall economic dynamism of the country, as fewer new ideas and technologies are developed domestically.

The overall effect would be a significant cooling of both the real estate and tech markets, with less investment, lower property values, and reduced opportunities for middle-class investors to build wealth.

What begins as a targeted tax on the wealthy could end up causing widespread harm to those who rely on stable markets and a thriving economy.

Bottom Line

The proposed tax on unrealized gains could trigger a wave of forced selling as larger investors bail from the market, flooding it with inventory and leading to pricing volatility.

Additionally, it could stifle innovation in sectors like technology, driving thought leaders to freer societies and slowing economic growth. This would have severe consequences not just for the ultra-wealthy, but for middle-class investors who rely on real estate and a robust economy to build their financial futures. 

Politics aside, left and right, does not matter, this is an alarming proposal, and you need to be careful what you ask for. It’s a sobering reminder that tax policies, government overreach, no matter how well-intentioned, can have far-reaching and long-term sustained damaging consequences.

Impact of Unrealized Gains Tax Proposal

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