I am exploring STR as a strategy to use accelerated depreciation to offset my W2 income. 

When working with your accountant, keep in mind that the self-employment activity must be the type to generate earned income rather than passive investment income in order to be eligible for the Solo 401k.

It is the funding that I am lacking.I feel that I am in a stalemate and the only way to purchase my first rental property is to generate more income than I am right now to get to the point of being able to pay the downpayment.Thank you all for reading this post and I appreciate any responses and advice.

Accelerated Wealth Building: Room by RoomHouse hacking allows you to tap into a unique source of income by renting out portions of your home.

What do you plan to do with your rental income? 

She doesn't have enough monthly income.

I have had the discussions with my wife about wanting to earn passive income through rental properties and we are on board with the idea.

More importantly... by paying yourself from your rental income, you are converting passive income into earned income, subject to Social Security and Medicare taxes.

I'm not sure if my income is offset by depreciaton? 

I am looking to invest in the future for additional income for retirement and to help build something that I can past to my son.