Upon sale, gains are taxed as long-term capital gains, calculated as the sale proceeds minus your adjusted basis (initial investment reduced by any return of capital).

For reference I own exactly one handful (5) SFH  rentals in my hometown, all have been purchased in the last 4 years.1) buying at a discount is MY preferred way to reduce risk.

Most sellers will laugh when you ask them to reduce the price by 3% because you're not using a buyer's agent.....You can buy and sell your own  properties without a license anyway...  

That can be used to buy down the mortgage rate or reduce closing costs. 

However, vacancy means covering 100% of the expenses.Multifamily properties almost always generate higher cash flow due to multiple income streams, which also reduces the risk of vacancies.

Alternatively, consider increasing rent or reducing expenses to boost cash flow.This post does not create a CPA-Client relationship.

Lastly, having a reserve fund is key to offsetting unexpected costs, especially with reduced cash flow from the loan repayments.Hope this helps, and congrats on tackling creative financing!

Diversifying into different markets, like Omaha or Austin, can help reduce any lender concerns and also spread your risk.Have you thought about the specfic market for your STR or MTR?

Reporting these expenses on your personal tax return (likely Schedule C for a sole proprietor) could result in a net loss that might offset other taxable income, reducing your overall tax liability.

.- Plan: reduce corporate tax rate to 15%.