Since rental losses are typically passive, the best way to offset W-2 income is through Real Estate Professional Status (REPS) (750+ hours) or Short-Term Rentals (STRs) (100+ hours and more time than anyone else managing the property), which allow real estate losses, including depreciation, to offset active income.A cost segregation study accelerates depreciation, generating large upfront deductions.

After being surprised by that activity I looked into the records for properties around my parcel and found that years ago a developer had originally bought the two parcels in one sale.

It's been a long-time dream to do a new build and so I'm actively working to find land and begin the process.I agree that the profit margin you post seems very small.

S-Corps are generally for active income (think Flip, Real Estate Agrent) andLLCs are generally for passive income (like rentals/STRs)The LLC and insurance is what investors are calling “Asset Protection” and it’s something you’ll want to invest in.

If you invest in RE, whether active or passive(management team, syndications, crowdfunding), I'd love the chance to quickly explain the structure and hear your thoughts on what might need to be improved.

If you’ve been active in the area, I’d love to hear your take—what’s working, what’s not, and anything I should watch out for.Appreciate any tips or advice you’ve got?

However, the tax treatment differs between short-term and long-term rentals:Short-Term Rentals (STRs): If you materially participate (work 100+ hours and more than anyone else on the property), you may be able to offset rental deductions against W-2 or other active income, offering greater tax benefits.Long-Term Rentals (LTRs): If your AGI exceeds $100K, your rental losses may be limited, unless you qualify as a Real Estate Professional (REPS).If you plan to expand your rental portfolio, consider an LLC later for liability protection and easier management.

But it's rapid price growth and sales activity could indicate a more volatile market, with the potential for corrections if demand slows as affordability becomes an issue.

They are much less restrictive than other municipalities in South Florida that are actively trying to reduce the number of STRs.Let me know if you'd like to talk further on the topic! 

My point is this, I am actively involved/advising this investor, providing local vendors contacts (handyperson, surveyor, painters, etc) and I "don't wait for them to call me", I call them weekly.