In the more recent past, there is also usually a set-aside for taxes/insurance to stay up on the property if there is little or no income coming in.   

Doing HML inside of a retirement vehicle is a great way to grow your funds tax deferred. 

So, both my wife and I are full time W2 employees and are in the 24% tax bracket, and I came across the short-term rental loophole which sounds really amazing for taking write offs and using them to reduce your W2 taxable income, but also equally difficult to qualify for, unless you are within a short driving distance to your property.  

LLC or not won’t make a tax difference. 

What I don't understand is how should I think about the tax benefits when holding rental property in an LLC.

I am happy to speak to what I have seen as the most common set up from a tax perspective to give you a starting point for a deeper discussion, but ultimately you will want to speak with your CPA in conjunction with an asset protection attorney because this requires a deep dive into your specific situation.  

Tim is a great resource and may be able to do some consulting to bring you up to speed, but you are still going to need a small army of vendors to get the task done.If you are set on self managing our company offers lease only services, at least that way you can get a fully screened tenant, with a lease template written by licensed attorney's and be in full compliance with renting. 

Nor would I buy here with the looming property tax threat against STR's. 

I'm wondering if he would be willing to accept an offer that has long term tax benefit, I would give him his asking price, the only real problem I foresee in the repayment would be another big downturn.

I have been investing in residential real estate since 2012 first in California and then in Florida.My cash flow has been slowly and regularly increasing during the years thanks to the cap on property tax increase in these 2 States (IE proposition 13 in CA and 10% cap on investment properties in FL).Recently I started to analyze deals in Texas and Indiana for my next rental property.Reading some posts on this platform and talking to some investors, I quickly realized that, during the years, all the rent increases will be eaten up by the regular property tax reassessments.I think many investors often underestimate this issue.Am I missing anything?