I saw a prior post where you mentioned having a STR in Texas.you want to have a conversation with your accountant to see if it can be treated as an active property instead of passive.If it can be, then there is a potential opportunity to offset the losses against other forms of income such as wages, interest and dividends.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

I'm self employed, no other "job"I have STR insurance policies that show a line item for Loss of Business Income.

@William Coet, as Jackson noted, there are too many variables to even begin.Two things to remember, any tax losses you utilize to offset incomes, will reduce basis making bigger tax bill in sale year.  

Vacancies mean a loss of income and increased expenses.

He talks about how you can purchase a rental property, manage it as a short term rental during the year you acquire it, do a cost segregation study, use those "losses" to significantly reduce your taxable income that year, and then turn the property into a long term rental in the following year. 

stacks of capital for unexpeeccted repairs, zoning, headaces you simply can NOT forse e until it happens, and 6 months of the mortgage in reserves for vacancy/ job loss. 50k an d8k in credit is mayb safe to by 1 property. that 38k you think is left, not nearly that will be left over. so what is leeft..... theere are your reserve. you have noting left to get another property

This holistic view can also help prevent gaps in coverage or unnecessary overlaps.Easier Claims ProcessWhen a loss occurs, dealing with one insurer can make the claims process faster and more straightforward.

Similar to a 401k, part of the strategy is a tax arbitrage.It is a much better outcome to take the deduction at 37% rather than 24%.Lever 5 - % Bonus AllowedIn 2023 Bonus depreciation has been limited to 80%, and will continue to ramp down 20%/yr until it hits zero in 2027.Bonus depreciation has come and gone in the past, but the more you get, that first year payback is higher and higher.Lever 6 - % Payback RatioUltimately how much you save vs. how much you pay matters.Caveat - Talk to your CPA before you purchase a cost seg study.You need to have a way to monetize your losses through1.

He had no losses and lead me to believe I would get my deposit back initially.