.), you're often limited to $25,000 of passive losses per year—and that phases out completely if your modified adjusted gross income (MAGI) exceeds $150,000.Real Estate Professional Status (REPS) or the STR Loophole: To use rental losses to offset W-2 or other active income, you must either:Qualify as a Real Estate Professional (750+ hours, primarily in real estate) and materially participate in the property.Or, if it's a short-term rental (average stay under 7 days), materially participate (100+ hours and more than anyone else) to convert it from passive to non-passive—even without REPS.Standard deduction vs. itemizing: You mentioned your CPA said deductions didn’t help due to the standard deduction.

I’ll be in town from June 28th to July 4th and I’m looking to connect with local professionals who understand the BRRRR strategy, Section 8 requirements, and have deep knowledge of the best (and worst) zip codes and neighborhoods to target.

Hey everyone 👋

I’m a rookie real estate investor just getting started and looking to grow my rental portfolio in Cleveland, Ohio. I’m currently analyzing deals and planning to close on my first few properties soo...

By asking the right questions and listening attentively, I assist them in determining whether they seek wealth multiplication or consistent cash flow.

Readers should seek professional advice.

Use a professional property manager or tenant screening service that checks credit, background, eviction history, and income verification.

Whether to stick with small properties or scale into bigger multifamily depends on your financial goals, management preference, and how aggressively you want to leverage tax advantages.Staying with SFHs & Small Multifamily (Under 4 Units)Pros:Easier financing (conventional mortgages)Lower acquisition price per dealSimpler to liquidate individual propertiesFamiliar territory with less complexityCons:Harder to scale to $20K–$30K/month cash flowMaintenance and tenant turnover per door is less efficientSlower appreciation and less control over valuationTax Insight:Properties qualify as residential for 27.5-year depreciation.You can deduct mortgage interest, taxes, repairs, management fees, etc.However, losses (due to depreciation) are passive, and you likely can’t use them to offset W-2 income unless you or your spouse qualify for Real Estate Professional Status (REPS).Scaling to Larger Multifamily (8–20+ Units)Pros:More efficient operations (economies of scale)Higher cash flow per propertyEasier to increase property value via NOI improvementsIdeal for long-term hold strategiesCons:More expensive to acquire and financeCommercial loans require higher reserves and more due diligenceMay need partners or syndication structureTax Insight:You can do cost segregation studies to accelerate depreciation (break property into 5-, 7-, 15-year components).This allows for bonus depreciation—100% bonus is likely returning in 2025, giving a powerful deduction in the first year.Even without REPS, bonus depreciation may offset other passive gains across your portfolio.If you or your spouse ever qualify for REPS or use the STR loophole, you could apply those deductions to offset W-2 income.This post does not create a CPA-Client relationship.

The lower the fee, it means that they have to burn and turn these properties and with tighter margins means less services (professional photos, lockbox tours, no open houses, etc.). 

A solid asset protection plan helps you manage risk, shield your holdings, and stay resilient in the face of legal or financial threats.To build a strong foundation in these areas, partnering with knowledgeable professionals is key.

@Jennifer Panian You're on the right path, thinking through how title, leases, and ownership structure affect both real estate professional (REP) status and potential gift or estate planning.