Quote · BiggerPockets Real Estate Podcast
I Started Investing with Just $7,500. Now I Own Millions in Rentals
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Opportunity Zones: How Remington Will Pay 0% Capital Gains Tax
At 34:00 · chapter starts 32:31
The warehouse deal isn't just a cash flow story — it's a tax play. The property sits in a federally designated Opportunity Zone, a program created in 2017 under the first round of Trump tax cuts to incentivize investment in economically distressed areas [1] — Remington Lyman "By placing his commercial warehouse in a designated Opportunity Zone and holding for 10 years, Remington will owe zero federal capital gain…" 32:31 . The headline benefit: hold the investment for 10 years and the capital gains tax on any appreciation is completely forgiven at the federal level. Ohio adds another layer — a state tax credit equal to 10% of the purchase price plus renovation costs [2] — Remington Lyman "State-level tax credit: 10% of purchase + reno costs: Ohio Opportunity Zone investors can claim a state-level tax credit equal to 10% of th…" 33:30 . Remington is candid that he didn't know about all these advantages when he started and estimates he left hundreds of thousands of dollars in savings on the table as a result. His advice: get a good CPA, get a good attorney, and aggressively ask what tax benefits you might be missing.
By placing his commercial warehouse in a designated Opportunity Zone and holding for 10 years, Remington will owe zero federal capital gains tax when he sells. Ohio also offers a state-level tax credit of 10% of purchase and renovation costs — benefits he didn't fully capture early on, costing him hundreds of thousands.
Ohio Opportunity Zone investors can claim a state-level tax credit equal to 10% of the purchase price plus renovation costs, adding significant savings on top of federal benefits.
Short-term rentals are overregulated and management-heavy; long-term rentals are safer but lower yield. Medium-term rentals — 1 month to 1 year — hit the sweet spot: traveling nurses, contractors, and students pay 50-100% more than traditional tenants, with far less turnover than STRs.
