I’m a real estate pro so material participation isn’t an issue, but the majority of my clients are in the $300k-$900k/yr gross household income range and so using STRs is not only the best way to get great ROI on real estate nowadays but the tax benefits are the primary driver for most including myself.  

We are W-2 employees with pretty straightforward tax filing at this point. 

I realized that I was slowly turning into a "Cash Buyer Employee," relying on a few cash buyers to take my deals—mostly due to speed and the certainty of them closing.

The maximum special allowance of $25,000 ($12,500 for married individuals filing separate returns and living apart at all times during the year) is reduced by 50% of the amount of your modified adjusted gross income that’s more than $100,000 ($50,000 if you’re married filing separately).

Hello Cliff, as I went through this about five years ago before I started investing in properties, the advice that you’ve been given initially is right on point so from another perspective, but say that you hire yourself as a W-2 employee instead of an owner on your schedule C personal 1040.

Look at State Employee's Credit Union (North Carolina) and check out their mortgage products.

Bringing the gross rental income to $5,800 - $7,500 a month before expenses and cap x. 

No surprise that the Cobb County employee didn't have a clue about that. 

I had a unit and the tenant was gross , filthy and disgusting , but he paid the rent every month .

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.