We're an appreciation market, not as much of a cash flow market here, unless you're putting a large down payment or actively managing STR's.Buying out-of-state can get you more cash flow, but the tradeoff is less appreciation (usually), and cash flow can be eaten up by maintenance and expenses.

I am writing to explore rental opportunities for a recently renovated property that has been 90% restored following fire damage.

One of my goals is to go through my past tax returns, and figure the ROI my rental properties with taking into account the tax savings (I typically calculate the ROI on net cashflow at the end of the year)I have a W2 so I generally aim to maximize my pre-tax accounts - 401k, HSA, IRA to a backdoor Roth IRA, 529My "losses" would be passed forward since I don't qualify as a RE professional nor have active RE losses.

It is a goofy idea but it is currently being explored.

It's different market now and I am slowly getting back to explore to see if we can still cashflow in the new price.

Negotiating a lower price to account for these issues could be an option, but if they’re not flexible, it may be best to explore other opportunities.Happy to connect if you’d like to discuss further!

I'm in Orlando and active in residential real estate as a Realtor® and also serve on the board of CFRI, the local chapter of the National REIA.

Most who get tripped up are those buying the smaller multi-families that don't possess the correct use permit/historical rental license activity. 

High-end furniture, premium mattresses, and a full kitchen setup can increase costs, but prioritizing durability and guest comfort—such as a high-quality king bed, sturdy sofa, and reliable appliances—can enhance the guest experience and drive better reviews.From a tax perspective, furnishings and appliances are depreciable assets, but how you deduct them depends on cost and timing:Items under $2,500 per unit can be expensed immediately under the de minimis safe harbor election (timing of when placed in service may result in the need to capitalize).Larger purchases above $2,500 typically must be depreciated over 5 or 7 years using MACRS.Bonus depreciation (60% in 2024, 40% in 2025) allows accelerated write-offs for qualifying property, including furniture and appliances.Section 179 may allow immediate deductions for certain furnishings, but eligibility depends on taxable income.Since you plan to materially participate in 2025, STR losses may offset W-2 or other active income.

What else if he isn't actively managing the property at all?