For example, for rental properties, lots of the categorization depends on the REI's specific tax strategy regarding what we're capitalizing versus what we're immediately deducting.

Many of these people are business owners who deduct too much on their taxes so banks won’t lendI love selling to Hispanics because they pay on time and have large down payments.

@Jake Hughes A cost segregation study is a tax strategy that allows property owners to accelerate depreciation on certain parts of a building, resulting in larger tax deductions in the early years of ownership.

Happy to connect @Gil Levy!

And while the deduction for depreciation is legit, you have to pay that back eventually - it's really a tax deferrment.I would be more interested in finding something that causes you to pay more taxes, because it is making you money.  

They collect the rent, deduct their fee and any other expenses they are allowed/required to pay on your behalf, then they distribute the remaining funds to you.It's critical that you review the property management agreement and understand what you agreed to.

Between losing the Homestead deduction (+$700/yr in property tax) and a negative cash flow, I don't see a solution.

It works like this:(1) Save up enough money for a down payment(2) Buy a single family home that you will Airbnb/VRBO(3) Ensure the “average period of customer use” is <=7 days(4) Materially participate (5) Cost segregate the property, resulting in large depreciation deductions(6) Use the losses from step 5 to offset your W2 incomeWhat makes this possible is that operating an STR is considered “non-passive.”

If you're a passive investor in syndications, your K1 losses are usually not deductible - even if you qualify for REPS. 

., cost segregation studies), carrying forward 2024 losses, and accelerating deductible expenses to reduce taxable income.Shift to Passive Investments: If management has become burdensome, hire a property manager or transition equity into more passive assets like turnkey properties, syndications, or REITs to reduce workload while maintaining income potential.Expand or Reinvest: Use your equity to acquire new cash flow-positive properties in markets with strong fundamentals, focusing on diversification and long-term stability.By refinancing, selling underperformers, or paying down debt, you can improve liquidity and cash flow.