Strategy questions, Primary residence, STR, Cost seg, etc.

[Benjamin Noblitt]

Hi everyone,

I am a newbie here, and I am trying to learn as much as possible right now. I have been thinking about a good strategy for me to start off since I already own a home. I would love to see what you guys think of my proposed scenario below:

Step 1) I bought my first house using FHA with 5% down in November of 2021

Step 2) I plan to live in the house for 2 years 

Step 3) I buy a new primary residence with another FHA loan at the 2 year mark (November of 2023)

Step 4) STR the first house for 2 years

Step 5) Get a cost segregation analysis to write off as much as I can with accelerated depreciation (using the STR "loophole")

Step 6) Sell house either with a 1031 to avoid taxes, OR sell house outright and get tax free $250k from capital gains.

Step 7) repeat process every 2 to 3 years

Please chime in with any guidance or help! Thanks in advance.