“Depreciation” is a wonderful tax benefit over the course of 27.5 years, but unfortunately, it isn’t a tax break per se, merely a deferment. 

As both an investor and a mortgage broker who has personally used both options, I can say there are benefits to each.It ultimately comes down to comparing the two side by side based on your specific situation.

I am still unclear about everything I read on the tax benefits for getting the cash out refi, and would like to understand that better2.

@Tayvion Payton  The biggest lesson I learned in my industrial property and retail property investments was to pay close attention to the tax benefits available on a property.

Depending on how you use the property, you may benefit from a cost segregation study and bonus depreciation once the property is in service. 

I would recommend an STR for the best tax benefits and cash flow no doubt.

Principal Paydown:  Cash Flow:  Tax Benefits: Savings from depreciation and interest deductions.For a deal to make sense, at least three of these components—home appreciation, cash flow, and principal paydown—need to be strong.

As a limited partner, you would be able to participate in the project without being involved in the day-to-day operations, while benefiting from the potential profits upon completion.If this sounds like an opportunity you would be interested in, I would love to discuss further and provide additional details on how we can collaborate.Looking forward to connecting soon.

Not the most scalable method, but I like the benefits it affords me while I am still a smaller operation.Completing 500 builds in just over 10 years is impressive for someone who just sorta fell into it.

The Midwest is going to benefit, no doubt.