If your healthcare needs are relatively low, an HSA can act as an additional long-term investment vehicle.Additionally, tax-loss harvesting in your taxable investment account can help reduce your capital gains taxes, allowing you to offset gains with losses to improve after-tax returns.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

You will likely need a bigger gas line (assuming gas).  

@Laurieann Frazier-DuarteWelcome to Bigger Pockets! 

(especially for those involved on this website)The reason I mention if it matters on this website is because most are real estate investors(long term buy and hold) and will most likely operate at a tax loss which doesn't have an impact on taxes.The second point is, will you invest or not invest in a good investment because of what your tax rate is?

Therefore, if the housing market has stagnated or the rental market is in decline, it may be wise to cut your losses and sell the property.

I can’t keep track of the number of  people I come across on bigger pockets who feel the need to create entity structures more complexed than my former employer that owned a hotel portfolio valued over a billion dollars. 

My other option is to wait until my partner is done with school and we buy that bigger property we can invest more into if we don’t buy something now Thank you!!!

You can also get a specific STR policy done by some of the bigger ones (State Farm, etc.). by looking into things with an insurance broker that can shop around for you.

If your income exceeds $150,000, your ability to deduct passive losses from rental properties is limited, and any disallowed losses carry forward to future years under the passive activity loss rules.Yes, the deductions can accumulate and roll over year after year.