Using a CA LLC owned by a WY LLC could preserve some benefits, like charging order protection, but doesn’t eliminate CA filing fees.

Because I benefit from more business oriented books I also like Who Not How and Gap and the Gain by Dan Sullivan and Ben Hardy.

First there is no reason to buy a Townhouse "all cash" instead put 40% down and reap the benefits of an extrenly low rate, No PMI and the option to escrow.

The accountant said that NJ allows one to “adjust” the basis in the property to the extent no benefit was obtained from depreciation...you do not get to take losses from real estate to offset gains on sales of property in NJ.

That is not a benefit for you, nor any kind of evidence that they are worthy of becoming a resident.That issue aside, I would not allow someone with a recent eviction on my property unless the "unfortunate circumstance" was unlikely to recur AND they otherwise have a strong historical track record of making payments AND they would put down a very large security deposit.

Truthfully, I don't think a Capitalization Rate of 8% is terrible plus you'll have an appreciating asset along with the tax benefits.  

Maybe even failure to take full advantage of an opportunity, resulting in a loss of potential profit or benefit.

(aka the BRRR method).But, if you stay on the sidelines, acting fearful and not greedy, you will reap the benefits of neither.Again I do think we see an early pullback in 2025, in the first 100 days.

However, this provides tax benefits over time rather than an upfront deduction.This post does not create a CPA-Client relationship.

Consulting a tax professional is key to ensuring compliance and maximizing benefits.