I haven't seen prices drop too dramatically but I have seen homes in my buy box sitting on the market longer and some lowering prices. 

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

Out of my 32 properties, I’ve seen insurance rates drop by up to 40% on renewals, and property tax increases are finally slowing down compared to the crazy jumps we saw over the last five years.

However, if single-family homes prove financially viable, I’m happy to continue building in that niche.Since these homes and projects are significantly cheaper than my market, the risk is relatively lower for me and can do at least two at a time.The ChallengeOne of the biggest hurdles is finding reliable contractors and subcontractors in the area.

California does not recognize Real Estate Professional (REP) status, but you can still claim it on your federal taxes if you qualify.

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.

https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

My question is do I have to recapture all the depreciation for tax in 2025?

You will want to fully understand the tax reporting burden you will face. 

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible.