At that point, I will start to make some judgements about growth vs. payoff vs refi, etc.You could use the money to continue to accelerate the payoff of your primary then get a HELOC on the equity to fund the downpayment of a rental property if/when you find one.For me though, I'm making minimal payments on the mortgage and getting the investment snowball rolling as soon as I can.

For instance, you can take advantage of accelerated depreciation, especially with STRs.

There are specific rules for 1031 exchanges including:The replacement property must be identified within 45 days of transferring the relinquished property.The replacement property must be received within 180 days after the transfer of the relinquished property or the due date of the taxpayer's tax return, whichever is earlier.Special rules apply for exchanges between related parties (defined in § 267(b) or 707(b)(1)).Real property located in the United States and real property located outside the United States are not considered property of like kind.Cost Segregation StudiesA Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

For the other portion, invest how you see fit really.You can try accelerating some purchases that you would normally do next year to be this year, but there's not a ton outside of the normal stuff.

After the cost segregation study was performed, this was the new asset allocation breakdown by useful life.Here are some examples of what types of assets are included in each of these asset classes.5 Year Useful LifeSpecialized equipmentCabinets and countersRefrigerators and microwavesSecurity alarm systems and telephone connectionsDecorative wall treatments, ceiling fans and flooring15 Year Useful LifeSidewalks, landscaping and asphalt pavingSignage and site lighting39 Year Useful LifeDoors, walls, roofing and windowsFlooring, drywall partitions and ceilingsEmergency lighting and restroom fixturesPlumbing, HVAC, and electrical distributionThe use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Hey Robby, If you used accelerated depreciation that will shorten the life of the deprecation so you can write off more sooner. 

You can take advantage of bonus depreciation and accelerated depreciation deductions to offset your passive income.With the 1031, you might have excess basis which is eligible for bonus depreciation. 

For me, I would want to identify an accelerated process to buy a new property via auction.

This post will help taxpayers understand how to maximize accelerated deductions by examining a number of Sec. 1031 exchange rules and how they are affected by cost segregation studies.

If you want to accelerate the process… find a position with a company in the real estate industry.