Diamond Elevation
The Black Diamond Framework · STR Tax Strategy
We went from a six-figure tax bill to a six-figure refund.
One cost segregation study on Black Diamond Retreat unlocked $300K+ in accelerated depreciation — and changed how we think about every deal from here forward.
$300K+
accelerated depreciation identified on Black Diamond Retreat
6-Fig
projected tax refund in 2026 — funding the next acquisition
What is cost segregation?
The IRS lets you depreciate faster. Most investors don't know how to use it.
Normally, a rental property depreciates over 27.5 years. Cost segregation breaks your property into individual components — flooring, appliances, fixtures, and cabinetry — and accelerates depreciation on those components to 5–7 years instead.
Our story · Black Diamond Retreat
How we structured our STR like a business from day one.
Think like a business, not a buyer
Our STR isn't a vacation home — it's an operating company. From day one, we set up Ja & Ba Properties LLC, opened separate accounts, built a brand, and had a plan for both cash flow and tax flow. That shift is what turns a purchase into a framework.
How we funded Black Diamond Retreat
We used a hybrid approach — part savings, part HELOC. Savings covered a large portion of the purchase since it's interest-free capital. The HELOC bridged the remaining costs for furnishing and finishing. Every dollar had a purpose — we weren't spending, we were circulating capital with intention.
The $300K depreciation advantage
Our cost-seg study on Black Diamond Retreat — a brand new construction home we designed from scratch — showed over $300,000 in accelerated depreciation, reducing our 2025 taxable income by that amount. That translates to a projected six-figure tax refund in 2026. We're treating it like phase two funding — paying down the HELOC, restoring reserves, and positioning for the next acquisition.
Structuring it like a family enterprise
Through Ja & Ba Properties LLC, we operate like any small business: hire the kids for legitimate work, fund custodial Roth IRAs, deduct legitimate business expenses, and build business credit to prepare for future projects. This isn't a rental — it's a family enterprise.
The Black Diamond Cycle
We're not chasing volume — we're chasing strategy. Each diamond fuels the next, compounding returns and experience.
Do you qualify?
Three things you need to make this work.
You own the STR
You must own the property — not rent it. This strategy is for property owners only.
You materially participate
The IRS requires 100+ hours of involvement AND more than any other individual — property manager, cleaner, co-host. Keep a detailed log. Active STR hosts who manage operations typically qualify; passive investors usually don't.
You work with a cost seg specialist
This is not something a general CPA handles. You need a specialist who performs a formal cost segregation study on your specific property. The study is what unlocks the deduction.
This is our personal experience, not tax advice. Every situation is different. Work with a qualified tax professional or cost segregation specialist before making any decisions. Reba Coleman · Loan Officer · Dominion Capital Mortgage · NMLS #1079122 · Equal Housing Lender · Not a commitment to lend.
Diamond Vault
Get the full framework — Finance. Leverage. Repeat.
The Vault is where we open the books — the Black Diamond Framework, our exact STR financials, every calculator we use, and the full strategy behind how we built a five-property portfolio starting from one foreclosure with 10% down.
The Black Diamond Framework — full PDF guide
BDR Open Books — real income & booking data
STR Pro Forma, Deal Analyzer & Revenue Calculator
Mortgage Calculator with STR break-even nightly rate
LTR Blueprint — how we built $275K in passive income
STR Income & Expense Tracker
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