Explore multifamily or out-of-state investments for higher yields.Setting up an LLC provides liability protection but has no tax benefit for you now.This post does not create a CPA-Client relationship.

However, I'm drawn to the long-term benefits of multifamily properties.

Having time to do the work was the biggest benefit.

Additionally you can do a cost segregation study and get a lot of depreciation benefits to offset the rental income (and potentially other income).  

Lots of folks are pulling out cash based on the appraised value for their next projects and holding for a few years to benefit from appreciation. 

as a "donation" (translating to the benefit of taking a deduction for 2025).

Weigh the long-term benefits of the low mortgage rate you have versus selling and getting $500k from a sale exempt from capital gains tax.

Reinvesting $700K defers most taxes, preserves equity, and allows continued depreciation benefits.

Depending on how you use the property, you may benefit from a cost segregation study and bonus depreciation once the property is in service. 

The investor who bought this home owns an asset that is cash flow positive from day one and one that will benefit from all 5 profit centers of rental property investing for many years to come.