If you're comfortable taking on more effort for bigger rewards, BRRRR might be the way to go.From a tax perspective, BRRRR may be better because you can potentially benefit from accelerated depreciation on the property, which can help reduce your taxable income and give you a bigger tax advantage compared to a turnkey property.

If so, you can carry back the NOL for at least two years and use it to offset taxable income in those years.

., cost segregation studies), carrying forward 2024 losses, and accelerating deductible expenses to reduce taxable income.Shift to Passive Investments: If management has become burdensome, hire a property manager or transition equity into more passive assets like turnkey properties, syndications, or REITs to reduce workload while maintaining income potential.Expand or Reinvest: Use your equity to acquire new cash flow-positive properties in markets with strong fundamentals, focusing on diversification and long-term stability.By refinancing, selling underperformers, or paying down debt, you can improve liquidity and cash flow.

I’m probably preaching to the choir here, but you don’t have to sell (and incur transaction costs, potentially realize a taxable event, etc.) to generate liquidity.

Your "buy in" funds could potentially be used for improvements to the other properties you mentioned, without triggering a taxable event.

Looking forward to seeing your portfolio grow.Feel free to drop me a note if you need any help with cost segregation (how to reduce your taxable income using advanced depreciation).Chris Schmidt-Löffler

Quote from @Jon Taylor: @Pete Harper - Section 721 of the Internal Revenue Code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) without triggering a taxable event.

The increased depreciation deductions can offset your taxable income, including gains from the sale of the previous property.

STRs require more hands-on management, but it’s a viable option for reducing your taxable income without needing REPS.You might also consider a cost segregation study to accelerate depreciation on the rental, creating larger upfront paper losses.

It means they can help you accelerate the depreciation on the property, which will help you lower your taxable income