Seeking Tax Reduction Strategies for High-Income Household with LTR Focus

[Ray White]

Hello BiggerPockets community,

My wife and I have a combined W-2 income of approximately $550K, supplemented by $100K in stock grants annually. The income distribution is roughly 60/40 between us. We’re long-term rental property owners, with a condo we’ve owned since 2009 and rented out since 2013. It’s currently rented for $2,200/month, with a mortgage and HOA fees totaling $1,900/month. The condo’s value is around $550K, and we have a remaining mortgage of about $200K.

Our primary residence is valued at approximately $2M, with a $1M mortgage. Residing in high-tax New Jersey and working remotely, we’re exploring strategies to reduce our overall tax burden.

While I'm intrigued by the short-term rental strategy, my preference leans towards LTR due to familiarity. We're also considering purchasing another LTR near Disney to eventually enjoy with our newborn—a celebration of sorts for future family vacations. STR are not allowed in the community. However, the financials seem challenging, and I'm seeking advice to make this viable without significant monetary loss.

As a side note, I’m quite the handyman—think ‘handyman on steroids’—so I’m open to properties that require some elbow grease.

Any strategies or insights from the community would be greatly appreciated!