.- Once it looks like you are going to clear $50k for the year - after everything is deducted!

Yes, it is your debt to pay, the title co. just didn't catch it, and deduct it from your proceeds.

From page 730 (emphasis mine): "All non-business tax deductions and exemptions that were temporarily suspended by the 2017 tax bill should be permanently repealed, including the bicyclecommuting expense exclusion, non-military moving expense deductions, and the miscellaneous itemized deductions.23 The individual state and local tax deduction, which was temporarily capped at $10,000, should be fully repealed.

Is it advisable to do that for protection and tax deductions?

You must also materially participate in your RE activities.If you materially participate in each RE activity, losses are fully deductible.

Any fees collected by the property manager should be a separate charge and not deducted from rent.

Meeting these requirements could allow you to offset W-2 income with deductions like bonus depreciation and cost segregation.

When evaluating long-term real estate opportunities, keep in mind the four key pillars of investing:Appreciation – Focus on how your property’s value grows over time.Cash Flow – Assess your rental income after accounting for all expenses.Tax Benefits – Leverage deductions like depreciation to reduce your tax burden.Debt Pay Down – Use rental income to pay down your mortgage, steadily building equity.Think of it like investing in a 401(k) with a long-term perspective—especially in California, where property values can appreciate significantly over time.

But, your refinance is not always tax deductible. 

STRs give you more tax benefits upfront, but it’s wise to choose a property that could perform as an LTR just in case for stability.Using HELOC for Down Payment:The interest on a HELOC used for investment can potentially be tax-deductible, so using it to supplement your down payment could work in your favor.