Why the Poconos is the Perfect Place to Act on It
Big news for real estate investors: a new tax rule is coming that could make 2025–2030 an incredibly profitable time to invest in long-term rental property. If you’re thinking about growing your rental portfolio, especially here in the Pocono Mountains, this is a golden opportunity worth paying attention to.
Here’s what you need to know.
What Is 100% Bonus Depreciation?
Starting January 19, 2025, investors who purchase and place eligible property into service can deduct 100% of the cost of that property in the first year—rather than spreading that deduction out over multiple years like usual.
This rule applies to property placed in service before January 1, 2030 (or January 1, 2031 for certain categories of property). And when they say “applicable percentage,” they mean a full 100% deduction.
That’s huge.
How Does This Benefit Real Estate Investors?
This rule mostly applies to things like appliances, flooring, HVAC systems, fencing, or any other improvements that aren’t considered part of the building structure itself. These are often classified as personal property or land improvements.
Here’s a simple example:
Let’s say you buy a single-family rental in the Poconos and invest $20,000 in eligible improvements (like new appliances, carpet, and HVAC). Instead of depreciating that over 5 or 15 years, you may be able to write off the entire $20,000 in year one.
That’s a serious reduction in your taxable income—and a major increase in your cash flow.
Why the Pocono Mountains Are Ideal for Buy-and-Hold Investors
Now, let’s connect the dots. The Poconos continue to attract renters looking for clean, safe, scenic places to live—whether they’re relocating from New York or simply looking for a quieter lifestyle.
Here’s why this area stands out:
- Affordable home prices compared to nearby metro areas
- Steady demand for long-term rentals
- Great quality of life for tenants (and landlords!)
- Strong appreciation potential in popular towns like Stroudsburg, East Stroudsburg, Mount Pocono, and beyond
With this new depreciation rule in place, buying and holding property here gives you the chance to build equity, generate rental income, and now—maximize your tax advantages.
But Wait – Talk to Your Tax Pro First
This is your friendly reminder that while I’m a real estate agent, I’m not a CPA or tax advisor. This blog is for informational purposes only, and everyone’s tax situation is different.
Before making any decisions, please consult with your CPA or tax professional to see how this applies to you. You may also want to explore cost segregation studies to identify eligible components of a property that qualify for 100% bonus depreciation.
Final Thoughts
The new 100% bonus depreciation rule is a rare opportunity—and it has a sunset date. That means timing matters.
If you’ve been thinking about buying your next (or first) rental property, the Pocono Mountains offer a beautiful and strategic place to invest. Combine long-term rental potential with upfront tax savings, and you’ve got a smart path toward long-term wealth.
Looking to Invest in a Pocono Mountain Rental Property?
Let’s talk! I specialize in helping investors find the right single-family homes to buy and hold in the most promising neighborhoods of the Poconos.
📲 Call or text me: 570-730-1205
📧 Email: [email protected]
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I’ll help you find the right deal, run the numbers, and build a portfolio you can be proud of.
