The strategy is to buy and hold with positive cashflow.  

I’ve seen a couple of the local guys switch their strategy to one- and two-beds.

For long-term strategies, a cash-out refinance is usually more advantageous, as it preserves ownership and offers fixed terms.To proceed, start with a professional appraisal to confirm the home’s value, compare refinance terms with traditional lenders, and carefully scrutinize shared-equity program terms to ensure they align with your financial goals.

Since your post is a bit older, I stumbled upon it while researching strategies for navigating 1031 exchanges in this tricky high-interest-rate market.

My strategy in Arizona has been adding bedrooms and renting by the room - currently getting 850-950/room in nice neighborhoods.

Will be a better question for your CPA in my opinion, they'll have better visibility into what strategy will work best before filing season and EOY. 

I am an investor/agent and own 5 and it's my primary investment strategy.

I’d be happy to connect, chat through strategies, or see how we can work together.

So start with STRATEGY. 

It sounds like you should discuss specifics with a knowledge RE tax professional and discuss tax strategies.