In 2024, I cost segmented 2 high value properties and expect to pay very little in taxes.   

Yup, do it smart, as tenant's vacate, but I think your in the WRONG segment of REI.   

@Jonathan Rivera, I'm not too familiar with NJ but what I do know is that it has very distinct regions.

I see the IRS regs about rental activities being defined as passive, but I don't see anything about a lower rate.I just see that this "passive activity" distinction subjects us to "passive activity loss rules", which limit our ability to offset other types of income with net passive losses.But even that limitation is negated for us because we fall into the "active participation" exception, so we can offset our regular earned taxable income dollar-for-dollar with losses from our rental (if I understand the regs correctly).

This is why I like treating each part -- investment and primary residence -- as a distinct purchase even if there's only one closing and one contract. 

It's good for segmenting leads based on criteria such as location, types of properties they are interested in, budget, etc.

Working within this segment would also be a great way to learn. 

There is a distinction between a builder and a developer.

Every area will have its own distinction....like NY/Boston/Chicago etc there may be A properties that are 100+ years old and there may also be brand new to market assets.

Homes that appeal to our target tenant segment range from $320,000 to $475,000, so the supply of housing we target remains almost the same regardless of how many new homes are built.DemandPopulation growth drives housing demand.