@Adriana, you might want to check with you CPA regarding Estate Plan regarding tax deductible. 

Note that California taxes capital gains as ordinary income (up to 13.3%) and does not conform to federal bonus depreciation rules.This post does not create a CPA-Client relationship.

I was not sure about the title of the post.Note: I am not a CPA or financial analyst.

As your portfolio grows, an LLC can streamline management and enhance liability protection.This post does not create a CPA-Client relationship.

Focus on building strong business credit through timely payments, low debt levels, and solid financial records, which carry more weight than the name alone in establishing creditworthiness.This post does not create a CPA-Client relationship.

Maintain detailed records of all renovation expenses to substantiate deductions and ensure compliance.This post does not create a CPA-Client relationship.

Don't forget the cost segregation on the SRT portion to save you taxes.This post does not create a CPA-Client relationship.

I would likely use the equity to purchase more real estate so I might just 1031 into a new propertyCaveat: I am not a CPA, tax professional, lawyer, IRS afficianado or other expert in taxes, but...If you have lived in the property for two of the last five years, you should be able to capture that $100k in appreciation without needing to go through the hassles of a 1031 exhange.

Only thing I’d add is between step 2 and step 3, talk with a CPA before doing a cost segregation study.

This balanced approach meets your financial goals, diversifies risk, and aligns with your preference for conservative real estate investments.This post does not create a CPA-Client relationship.