I also would like to reduce the audit risk due to large bonus depreciation. 

Being able to shuffle leads from MTR to MTR is a huge bonus and you can benefit from the economies of scale faster. 

This is true for bonus depreciation items as well.  

The rental market is already showing signs of recovery:Spring Is Coming: Historically, the rental market picks up momentum in the spring as tenants prepare to move during warmer months or ahead of the school year.Early 2025 Trends Are Positive: In just the first week of January, we’ve seen a dramatic increase in rental applications, suggesting pent-up demand from renters who delayed their searches in November and December.What Landlords Can Do NowTo make the most of this recovery, consider:Refreshing Your Listings: Update your photos, descriptions, and pricing to ensure your properties stand out.Offering Incentives: Temporary discounts or move-in bonuses can help fill vacancies quickly.Being Patient: The market is already bouncing back, so don’t panic if your property takes a bit longer to lease than usual.What’s been your experience?

@Steven HsuBigger Pockets is a great place to find a real estate tax accountant.A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

It's a forced equity and appreciation play with the benefit of personal use and the hope that 100% bonus depreciation comes back.

What is drawing your eye to Flagstaff besides the bonus of already living there. 

The issue with section 179 expense is that you normally have to operate at positive income.Under most circumstances, bonus depreciation is better since you can take bonus depreciation even if you operate at negative income. 

Another nice bonus of using this as a funding source is no closing costs, big help on the front end.Obviously, if all goes relatively well, the plan would be to hold these properties as rentals and refi at some point down the road when rates on mortgages drops back down a bit, whenever that may be.

Example: https://www.nytimes.com/2024/03/18/briefing/real-estate-agen...