High Rates, Big Tax Losses, and Two Tucson Deals with Tim Fergestad

Rates are up, building has slowed, and Tim Fergestad thinks that makes right now a great time to buy.

Tim breaks down what high rates mean for renters, owners and apartment investors. In Phoenix, renting one of his build to rent townhomes costs about $1,000 a month less than owning a similar home, and that gap keeps rental demand strong.

He shares a calm month in the portfolio, with ice storm repairs in Nashville and a 15% jump in net operating income at a Tucson property. Then he explains depreciation in plain words: cost segregation, bonus depreciation, and how a $100,000 investment can produce $60,000 to $120,000 in paper losses depending on the deal.

Tim also compares two Tucson apartment deals from the same operator, one built for upside and one built for a steady capped return. He ends with marching band season and why he started writing about family legacy.

Key topics:

• Why high rates help landlords and renters choose to rent
• The 10 year treasury, new construction, and why existing apartments are gaining value
• Ice storm repairs in Nashville and a 15% NOI jump in Tucson
• Aerospace salvage and why Tim likes physical assets
• Depreciation, cost segregation and bonus depreciation
• Icon on Broadway vs Icon on Pima: upside vs a capped preferred return
• Marching band logistics and the family legacy workbook

About Tim: Tim Fergestad is the founder of Oak Street Assets and host of the Phoenix Prosperity Podcast. He partners on apartment communities and build to rent projects in Arizona, Texas and Tennessee and acts as a fund manager for his network.

Links:

Oak Street Assets: https://oakstreetassets.com

Depreciation guide: https://oakstreetassets.com/depreciation-guide

Tim's writing and free family legacy workbook: https://timfergestad.com

Want to be a guest on the show? https://phoenixprosperitypodcast.com/guest