STR-friendly markets make it easier to get started and grow your business, and the lack of state income tax is a huge perk.

If it's in a high tax /flood area taxes and insurance could easily be 5-6k or half that then with title insurance points and closing it could make senseWhat is the breakdown ?

That said there are some nuances and requirements to property implement interest tracing so ensure you talk to your tax professional ahead of time and keep the funds movement as clean as possible. 

They also have the Mortgage Tax Credit.

$500 per day penalty up to $10,000 and up to 2 years in prison for willful evasion per entityNo cap on the amount of entity penaltiesCheck with your CPA, Tax Advisor or attorney on this as it is a freight train of compliance coming!

@Greg StrunakA 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.

I’m not claiming to know it all—I’m here to learn, build relationships, and grow.Here’s what I bring to the table:A strong understanding of leveraging Net Operating Income (NOI) to secure financing and reduce out-of-pocket costs.Experience in negotiating deals and identifying opportunities, especially in the LA market where many multi-family properties are under $2 million.Skills in managing larger properties, from scheduling repairs and upgrades to optimizing operations for long-term value.The ability to use AI tools for data analysis, market insights, and deal projections to help us act quickly and efficiently.I’ll be upfront—my funds are limited after dedicating the COVID years to supporting my family, but I have the work ethic and expertise to find and manage properties that perform.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

I do a procedure every year at tax preparation time. 

@John BowensAre you loaning from a pre-tax 401K or did you convert to Roth and then loaning from there?