Choose your property wisely - Multi-unit properties like triplexes and fourplexes offer potential economies of scale and income diversification.

This would be especially true if they are only doing placement and you are stuck with the tenants that they choose. 

.- Use cost segregation studies to expedite depreciation of your properties to offset large income gains.Entity Structure- Choose appropriate legal structure (LLC, partnership, or S corporation) with consideration for different tax implications.Tax Credits- Explore available credits, like energy-efficient or historic rehabilitation credits.Qualified Business Income (QBI) Deduction- Check eligibility for QBI deduction, providing up to a 20% deduction on qualified business income.Record Keeping- Keep accurate and organized records for tax compliance and audits.State and Local Taxes- Consider varying state and local tax implications, including property and income tax rates.Tax Planning- Engage in proactive tax planning, consulting with professionals for a comprehensive strategy.Tax Changes- Stay informed about changes in federal, state, and local tax laws affecting real estate investments.Remember to consult a real estate tax professional for personalized advice based on your specific situation.

A person should choose what they are comfortable with as well as what makes financial sense in the particular situation.

Matthew,Based on recent investor track records I would say choose Ohio over NY or NJ for a 2-4 unit. 

Due to the current high interest rates and prices, many investors are choosing to increase their down payment to ensure a positive cash flow even in the not so "nice" areas and plan to refinance in the future.

I ended up choosing Ohio as my target market and more specifically Columbus.

New build...i was able to add value by choosing to build a mezzanine to increase sqr footage.

Conversely, if I choose to retain the three California rentals and pay off their mortgages, my estimated cash flow would be approximately $6,800 per month, albeit with properties that are 20-25 years old.

If you tie up money in stocks within your LLC and then a deal pops up, you might have to choose whether to lose the deal or sell your stocks at a LOSS.