@Abraham BerkowitzI suggest you focus on making money on this deal and not on reducing future hypothetical taxes. 95% of first-time flippers lose money on their first deal once everything is accounted for.

., lower Airbnb income, longer renovation time)Consider professional property management to reduce your workloadEnsure you're compliant with all local laws and regulationsFactor in potential capital gains taxes or other tax implicationsRemember, while the potential returns look attractive, real estate investments always carry risks.

STR a suboptimal option in this market due to restrictive ordinances.Purchase price: $1,260,000 with 11% down @6.75% fixed 30 yrTotal Rehab costs (labor + materials) thus far: -$70,390Cashflow to date (NOT including Rehab Costs above): -$60,237Projected Cashflow: 3.1% with 3 LTR tenants Wanted the group’s expertise on options as I am considering parting ways with this property given the number of leaks that have come up in this relatively young property.1) In 2025, 1031 into another (potentially more units) multifamily at least 20 years old.2) Investigate leaks/Stabilize and proceed with original plan as LTR and accept uncertainty related to potential future leaks.3) Proceed as MTR (hospitals and NYC nearby) so that can intervene on issues during vacancy periods.

The maximum special allowance of $25,000 ($12,500 for married individuals filing separate returns and living apart at all times during the year) is reduced by 50% of the amount of your modified adjusted gross income that’s more than $100,000 ($50,000 if you’re married filing separately).

Proper due diligence will reduce your risk, but it won’t eliminate it entirely.Personally, I like value-add opportunities because they build in equity from the start.

This is fairly common within the industry and a way to reduce administrative costs considerably since you’re not repeatedly negotiating the base terms and conditions of the contract.

Reduced Seller Commission Burden: Investors who sell properties might benefit from a shift where sellers are no longer expected to pay for the buyer’s agent, potentially reducing transaction costs.

.📈 **Maximize Tax Savings** – Understanding new credits, deductions, and incentives can help reduce your tax burden and improve cash flow.Whether you're a business owner or an individual, staying informed is key to navigating the complexities of tax law.

The question is are you comfortable reducing your cash flow so that you can take advantage of the equity that you have in the house to buy more properties?

Thanks to the Cost Segregation Study, the property investors accelerated the depreciation that the first year depreciation was approximately $394,000.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.