Purchase Another Investment Property and Utilize a Cost Segregation Study:When you reinvest in a new investment property, you can perform a cost segregation study to accelerate depreciation.

For DSCR, it's usually slightly higher than the conventional route due to it only looks how well the subject property rental performs + credit vs conventional where it requires credit, income, assets to be reviewed.

@Harsh PoshtiThis will be dependent on the area and I would recommend you perform a market study to determine which project would yield better results and if either is even viable.

Perform a Break-Even Analysis: Determine how long it will take for the savings from the refinance to cover the prepayment penalty and any other refinancing costs.

First, I’ll send my hopes and prayers to the seller that you can perform.

They cost $800k+ though but well worth it when want investment that actually performs profitably.

Location analysis is crucial, considering demographics, retail market performance, and traffic counts.

From a performance standpoint, I see a big change.

While you shouldn’t categorize all tenants and it’s the landlords responsibility to properly screen, the tenants who reside in better situated housing and pay higher rents are more financially responsible meaning lower rate of rent loss and will generally take better care of the property which combined will result in less time allocated towards management functions if self-performed or more favorable management fee structures if 3rd party management companies are utilized (which ties back to #1, as well).

To maximize the tax benefits of STRs, it’s essential to track your time and other people's time spent on the property, avoid staying in the property more than 15 days, and perform a cost segregation study to accelerate depreciation.