There are some great tax strategies for short-term rentals, but very important to be aware of the personal use rules to make sure 280(A) doesn't become an issue. 

Just curious what is the long term plan as far as minimizing tax in later years as the account in pre-tax become huge?   

But you'd still haev the benefit of lots of costs spread across 7 or 15 years vs. 27.5 Work with a tax professinal becuase this is a tricky situation. 

What can be unburdened by what has been.and we shall tax your unrealized capital gains. 

So he paid the tax's for 5 years then went to court and prevailed and ended up with the property.

Let time do it's thing over 5-10 years, you can take advantage of the tax benefits in the meantime then 1031 exchange into lower cost, higher yielding markets to achieve those goals.Great thing abotu real estate is if you have the capital you have options and options are always good.

Inspection Costs - $400 Lender Fees - $1,000 Closing Costs - $2,000 Mortgage Payments - $2,500 Property Taxes - $600 Utilities - $1,000 Insurance - $200 Commissions - $4,000 Selling Closing Costs - $4,000 Home Warranty - $500 Termite Letter - $100 MLS Fees - $100 

Texas property tax sales.  

Operating Expenses includes taxes, vacancy, utilities, insurance, maintenance, and management fee.

This is also tax deductible.