FREQUENTLY ASKED QUESTIONS
A few things you should know
Here, you will find answers to most of our frequently asked questions.
NestVest Tax Benefits & Investment FAQs
How does Section 179 apply to these investments?
Section 179 allows investors to deduct the full purchase price of qualifying equipment or property, including modular or manufactured housing units, in the year they are placed in service. This can significantly reduce your tax liability in the same tax year the unit is acquired and leased.
What is Section 168(k) bonus depreciation and how does it work?
Section 168(k) permits 100% bonus depreciation on qualified property, meaning investors can write off the full cost of eligible housing units immediately. This accelerated depreciation can dramatically improve cash flow, especially in the first year.
Are these investments eligible for a 1031 Exchange?
Yes. Because these properties are income-generating real estate assets, they can qualify for a 1031 Exchange, allowing you to defer capital gains taxes by reinvesting into similar like-kind properties.
Can I combine Section 179 or 168(k) with a 1031 Exchange?
Not typically. Section 179 and 168(k) apply to newly acquired property, whereas 1031 Exchanges defer gains by reinvesting. Most investors choose one approach based on their current tax strategy. We recommend consulting your CPA or tax advisor to determine which is most beneficial for your situation.
What are your financing options?
We don’t currently offer financing, but many customers secure funding through HELOCs or other financial products from their banks. We recommend consulting your local bank for the best financing options.
Will I receive documentation to support my tax filings?
Yes. All investors receive a detailed breakdown of depreciation schedules, acquisition cost basis, and any supporting documents needed for tax reporting.
Who manages the property?
All units are fully managed by our trusted third-party property management partners. These professionals handle tenant screening, leasing, rent collection, maintenance, and compliance—ensuring your investment is hands-off while residents receive reliable support.
Social Impact FAQs
How does this investment model support affordable housing?
Your investment directly funds the placement of high-quality, energy-efficient housing units in communities with urgent affordability needs. These units are leased to residents who often fall below the area median income, bridging a gap in local housing availability.
Who benefits from these housing units?
Tenants are typically low-to-moderate income individuals and families, many of whom work essential jobs in healthcare, education, food service, and municipal services. Your investment creates stability and dignity through access to safe, affordable housing.
Are these units built to code and long-lasting?
Absolutely. All units are HUD-compliant or IRC-certified, depending on the model, and are installed with long-term durability, safety, and energy efficiency in mind.
What is the average rent compared to local market rates?
Rents are priced below market in most cases—typically a healthy percentage more affordable than comparable units—while still generating a return for investors through economies of scale and strategic placement.
Can I track the impact of my investment?
Absolutely! Investors receive regular updates, including occupancy metrics, rent affordability statistics, and testimonials from community partners or residents when available.
