Any tricks or tips on decreasing the estimate?

You might get cash flow from your rentals without increasing your taxes, but you will not decrease them.Look at your rentals as long-term wealth accumulation, not a tax shelter.

@Eric SuessYou may be able to potentially offset rental losses against business income to reduce taxable income.It won't decrease the amount you have to pay in "Self-employment taxes" though.

Or we will be doing it but the value of our property will decrease based on demand for it?

Since this is commercial, can you increase the NOI by rehab, increased rents, laundry, decreased expenses?

At the end of 27.5 years if the building had decreased in value to $0, then you would owe no taxes.

All in all, my rent of $850/mo decreased to $550 after taking ownership considering the rental income from our tenant.

They bought so much land it drove up the price of land and also decreased the land inventory greatly.

As a matter of fact, the portion allocated to the interest will decrease every month as you are paying down the principle which means a smaller amount owed = less interest due.

I would love to invest in a student rental, but the surrounding college towns are struggling because of the population decrease in 18y/o in the state.