If you're thinking 1-3 steps ahead to optimize cash flow, then sure stick to CDs and govt debt.I'd opt for a very quality location, then private/public debt, and then HYSA, and last and definitely least low value areas with high intrinsic properties like Detroit, Cleveland, etc. if I'm "investing" in those last areas, I'd rather opt for HYSA/Debt before buying those. 

We love to sit around and talk about how to best optimize a properties we own, etc.

This should be just a simple optimizing return on cash or cost/bnefit issue.We can all earn 5% risk-free in money market MFs and accts right now. 

These include market analysis, property selection, guest communication, listing creation and optimization, and more.

Nathan -It's understandable that you want to optimize your tax situation by strategically utilizing your capital losses.

You mentioned a house price of 400K and a monthly rent of 2.5K  If we calculate based on these figures, then your rental yield is only 6.25% (2.5K*12/400K)(2.5K×12)/400K×100% = 6.25% Generally speaking, an ideal rental yield is around 8%-10%Consider renovating and upgrading to increase rental income or using financial tools such as mortgages to optimize cash flow.

Hi everyone,I'm seeking guidance on navigating the world of real estate investing, particularly in the context of tax optimization.

We also don't push rents to the absolute max and rather optimize towards finding really great tenants that stay long term. 

A well-thought-out property management plan, ongoing learning, and optimization are all necessary for building a successful real estate portfolio and achieving financial independence.Good luck!

@Spencer ElliottUsually indexed to prime rate so you are 200 bps over prime which is not optimal many banks offer slightly under or at prime.