It cuts turnover, stabilizes income, and eases wear-and-tear, which could complement your management approach.

Best practice is to have equity that you can sell if this happens or you are positive your W-2 income, good credit and equity position will allow you to refinance fast to another lender in the future if this happens.

We consistently produce over $70k in net income and I distribute this to support my family.Long-Distance REI: I am looking to invest in long-distance cash-flowing SFH in growing C-Class neighborhoods.

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

My question is do I have to recapture all the depreciation for tax in 2025?

Too bad you can't buy something owner-occupied, put 5% down with the best interest rate, live in it for 12 months (and fix it up), rent it out and repeat the cycle.Here's some other info you might find useful:----------------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Owner-Builder Construction Loan (Challenging but Possible)Some lenders offer owner-builder loans, but they usually require:✅ Strong financials (good credit, assets, low debt-to-income)✅ A solid construction plan, budget, and timeline✅ Proof of prior experience (renovations help, but formal experience is a plus)✅ A licensed contractor or project manager to sign off on the build2.

In that case you might save taxes building with them.

When we sold the house for a large profit, it was difficult to determine who got what profits and the CPA struggled to navigate how to file taxes since I lived in the house for over two years.

Things in your tax filing need to be really off to do this.Being a REP/active participant and using cost seg to offset a spouses (or your own if that's all you do) W-2 wages is fairly common practice.