Correct you need to buy as an investor, or if you buy with a partner that will be living there you can put them as the owner living there and do an FHA purchase/first time home buyer (if they do not have any other homes and using that benefit already).

Depreciation is going to still be offsetting cash flow quite a bit - when you accelerate depreciation, it doesn't technically do absolutely every depreciation item in year one, so there still is going to be quite a bit of depreciation to offset your cash flow.On top of all of this, the tax benefits largely are going to come in year one to offset your income.

You may already have though about these aspects, but from personal experiecne, here are my 2 cents..Maximize Tax Benefits: One of the major perks of house hacking is the tax advantages.

I thought I could capture all of the tax saving benefits of cost segregation and the tax benefits that come from my LLC.

There are many benefits associated with a 721 Exchange.

I'd give the current PMC the benefit of the doubt and assume they are just trying to do this by the books as opposed to dragging their feet, but otherwise agree with @Theresa Harris.

This could have three fold impact ---> allow for writing off paper losses against W2 income, increase the property value by increasing monthly rent, and all the normal cash flow benefits for RE...right?

The investor must consider whether the potential property value increase or other benefits outweigh this loss.

That being said, there are some significant benefits to building versus buying and rehabbing.1) If you're building, you should be able to come in at 80% LTV or better assuming you're acting as the GC. 

Instead of leaving equity tied up in the property, you can refinance and put that money to work on your next investment.Advantages:Leverage: You’re using borrowed money to increase your purchasing power.Long-term Wealth: By holding rental properties, you benefit from appreciation, passive income, and tax advantages.Scalability: The ability to keep reinvesting capital makes it easier to scale compared to traditional buy-and-hold methods.Is BRRR Right for You?