Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to uncle sam instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they just buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of best ways to end up with a much larger net worth at the end of your career.

My wife and I have business income and our accountant can divide the income according to what would be the best for reducing tax liability.  

•Instead of transferring the title, consider using strong landlord insurance, an umbrella policy, or a land trust (with your LLC as the beneficiary) for added liability protection.Your FHA Loan Potential for Another Property•Since your first home is already a rental but was likely purchased with an FHA loan, you may still be eligible for another FHA loan—but only if you meet one of these conditions:•You relocate at least 100 miles away from your current home.

Please consult with an attorney that is familiar with 1031 exchanges.If you move into the farm after two years and later sell it, capital gains will be prorated based on investment vs. primary residence use, limiting your Section 121 exclusion ($250K single / $500K married).

If you continue using it as a rental but reduce STR activity below the material participation threshold, your deductions may become passive and subject to loss limitations.2.

The process has been gradual due to limited capital and DIY work.

Hey @Ingrid Hussey, we’d also recommend QuickBooks—specifically QuickBooks Online—so you’re not limited by Mac or PC and can access it from anywhere (not just your local system).

I recommend using a lender that non-reporting to personal credit and can close under the LLC to keep your DTI lower and overall your personal liability profile more bankable.

Even relatives and friends can create liabilities and maintenance issues through their activities.

Limit on rentals and we are above that limit today, so no new buyers at this time can buy to rent.