Depreciation recapture tax is the taxable amount on deductions you made for property depreciation.

If your second home is located in a federally declared disaster area, you may be eligible for temporary mortgage relief options such as:- **Forbearance**: A temporary suspension of mortgage payments for up to 12 months.- **No Late Fees or Penalties**: During the forbearance period, you won't be charged late fees or have delinquencies reported to credit bureaus.- **Repayment Options**: After the forbearance period, you won’t be required to repay all missed payments at once.

This would allow you to deduct the $11,000 immediately in 2023, reducing taxable income for this year.

@Ben StanleyGet liquid first start by saving money in a taxable account

You could consider house hacking to reduce out of pocket expenses.It’s definitely an appreciation play not a cash flow play but with the federal government here appreciation is consistent - you won’t get super high appreciation like some places but also don’t get high depreciation as well.

Of the remaining $200,000 gain, 75% (6 out of 8 years) ($150,000) is attributed to the time the property was rented and is therefore taxable at the long-term capital gains rate.

The real estate appreciation, you can reduce your taxable income, and the interest on your mortgage is usually deductible, which is a nice bonus.

Quote from @John Federic: I ran some numbers for you using the Cashflow Analyzer Pro from AssetAFC.com (see the attached picture).From my perspective, this deal still looks acceptable, even though it won’t cash flow in the first year, assuming a 5% vacancy and 5% for repairs.

Exploration of solar panels with 1,651 hours of usable sunlight per year and attractive state and federal grants available.Water Drainage:Check the grading around the property to ensure proper water runoff.

Keeping an eye on Federal Reserve policy and mortgage rate trends is crucial to timing your investment and budgeting accordingly.2.