That's 50k a year gone and you are losing tax write-offs and equity potential.

Beyond real estate investing, BiggerPockets Money has great episodes on how to avoid the middle class trap with your investments - ie how to structure your investment best so that they're not all locked up in accounts with penalties until you're 65. 

Early in my investing career I wanted to cost seg my properties, but my accountant told me I was wasting my time because I was unable to use the full depreciation benefits I already had.  

Many banks handling tax escrow accounts for mortgages have mistakenly thought there was one tax due twice/year or totally missed one of the taxes.Investors should research the SEV and the Non-Homestead property tax millage rates to project what the property taxes will be after adjustment.

I think you would need to account for that with each “flip” - does it? 

Easy to transition this to a property manager, or even have multiple people run the account, than if the account is a personal account.

The only part that Property 1 pays on that loan is the escrow for property tax & insurance for Property 1.Thank you for your insight.You need to look at purchase price to determine cost basis, not how you financed the purchase.

But ask your CPA/accountant because I don’t know. 

A HYSA pays 4.5-5%(before rates went down) pre-tax, 3% net tax if you're a high earner. 

@Kevin Hoover, with certain types of entities it is possible to contribute property to and distribute property from that entity without triggering a tax event.