I currently own two properties in California, and at 21 years old, my goal is to continue purchasing properties and eventually pay them off to achieve financial freedom.I’m considering two options:1.

Doesn't seem like the FED has much control this time around considering the 10Y T bill (and 5Y) continues to march higher even with the FED fund rate dropping.

If not, even though you are a re pro, losses are passive & deductions are limited.There are 7 scenarios that will qualify as material, and you only need to meet one:*500 hours*Substantially all participation*> 100 hrs and at least 1/2*Significant participation*5/10 years*Personal service activity w participation in last 3 years*Continuous participationTo materially participate, you must be involved in the operations of the activity on a regular, continuous, and substantial basis.Once you pass the pro test, the material participation often comes along for the ride.You can elect to aggregate all rental real estate for purposes of measuring material participation under Sec. 1.469-9(g).Your time spent on all your rental properties (STRs don't qualify) counts as one activity, making it easier to materially participate.In order to make a strong case with your CPA and the IRS you need to document your hours.Best practice is an hours log where you are as specific as possible.

My advice probably isn't the one that will maximize your return, and it may not even be what I will follow as we continue to grow our portfolio, but here it is.My wife and I manage 5 units (4 we own, and 1 we arbitrage), and we allow anyone to give us 30 days notice to vacate at which point they can be let out without penalty.

That said, I prefer to use a HELOC for short term investments like fix & flips because I only pay for what I use and I can continually keep recycling the money.

Colorado Springs is a beautiful place to live and will continue to attract new residents from all over the country for decades to come! 

A business/way of life to continue? 

If the continuing maintenance and repairs are more than you can afford and make the property cash-flow negative, I would sell and hope that the repairs I made and the appreciation would earn me some profit.

Also, solar companies typically continue to raise their fees in the contract each year it is owned.

Biggest take away is permitting timelines continue to increase!