So more Roth for way less in taxable income incurred. doing this is easiest in a Solo 401k if you qualify but can also be done using a checkbook IRA as well. check out this post that @Dmitriy Fomichenko made explaining this concept.https://www.biggerpockets.com/forums/51/topics/1223601-how-t... 

The rental income from the first home will pay for the mortgage/monthly costs.  

@John Zhang If your wife qualifies for Real Estate Professional Status (REPS) and materially participates in managing rental properties, there is no limit on the amount of rental losses, including depreciation, that can offset your W-2 income.

To maintain your standard of living, your rental income must increase faster than inflation.

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

I have  a W2 job and look forward to the losses this year to offset some of my income (Not my 'WHY' for running an STR, but a nice bonus).

Hey @Scott Trench unfortunately real estate losses (active or passive) will not offset portfolio income from stock sale gains. 

I have a w-2 income and own three properties, all long term rentals, that I've had for a few years.

They lower taxable income for federal taxes but not for FICA.However, employer contributions made by the S-Corp are not subject to FICA and count as a business expense.Make sure your W-2 correctly reports wages, deferrals, and FICA wages.

As Nathan stated.... you have solid policies and protocols in place and you follow them.