., room to room rentals for students can be a great strategy.

What real estate strategy did you use? 

Another strategy involves a hard money loan for a short-term down payment (bridge loan), followed by refinancing with conventional financing later.

There are tons of opportunities, but the niche of San Diego tends to be purchasing small 1-4 units and adding ADUs to increase density (if that is a strategy you are considering)

Never used that rules nor any rules set by the gurus and somehow build up a portfolio that allowed my to exit the corporate world.I find those rules are an obstacles for my clients and slow them down from achieving their dreams.Its better to come up with your own rules based on your personal goals & strategy.

We have clients come in all the time with wacky asset protection strategies created from misinformation or their old accountants misunderstanding the rules.

If you have a hole this big, you probably have a dozen more you haven't even discovered yet.

However, there are other strategies you can consider to optimize your tax situation:Maximize Deductions: Ensure you're fully utilizing all deductible expenses related to your rentals, such as maintenance, repairs, property management fees, and travel expenses to the properties.Depreciation: Make sure you're taking full advantage of depreciation on the properties, which can significantly reduce taxable income.Cost Segregation Study: For larger properties, a cost segregation study can accelerate depreciation on certain parts of the property, offering more upfront tax savings.1031 Exchange: If you're considering selling any properties, a 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds into another rental property.Energy-Efficient Improvements: Tax credits may be available for making energy-efficient improvements to your properties.Rod

House hacking is a great strategy. 

This strategy is also the best way to get into real estate investing with low risk.