HI Kev, we helped a lot of luxury STR investors this year utilize the accelerated deprecation tax incentive, I would actually suggest checking out the bigger pockets featured tax preparer section and sine it's likely a considerable reduction definitely not try and do it yourself..the investment in high quality reliable tax advice is essential to any investor tool kit. 

BUT, I just want to know if I downsize and buy a luxury condo, is that a good investment?

The best strategy I see for it is as a Luxury STR, I’m just not sure the market supports this. 

There is more inventory but still an elevated demand for both affordable and luxury vacation rental eligible prime homes. 

It's easy to see why buyers were captivated: Timeless elegance meets modern updates 4 spacious bedrooms 2 beautifully updated baths Over 2,800 sq ft of luxurious livingThe perfect blend of historic charm and contemporary comfort.

Ft)Luxury ($150-200 x Sq.

Already talked to the Warren County office and they said it's a 3 month process to get STRs approved but in general the process seems to be pretty straight forward if you aren't in a HOA or in town.I have a property in the area that is a smaller 2bed/1bath that does really well and I feel very comfotable with the 3 bed numbers, but once we get to the higher range properties 3-4 bedrooms and properties that I would consider to be luxury stays for large groups, I am finding it hard to make the numbers reallyyyy make sense at a $300 ADR.

The best strategy I see for it is as a Luxury STR, I’m just not sure the market supports this. 

Luxury Plank Vinyl is a durable, long lasting product that works well in most spaces and with most design styles.

Premium RE, high COC return like a luxury STR or small balance multi family could be a good partial anchor.