However, I wouldn't say it is a complete tax-free strategy. 

If you are fixing and flipping then you wouldn't need a PM, but every deal an investor is looking to purchasing that is a value add strategy, you need a good GC and broker/agent.

If transferring the property to an LLC, be mindful of the due-on-sale clause, and note that an LLC itself does not offer tax savings unless electing S-Corp status, which is rare for rentals.To maximize tax benefits, consider cost segregation, bonus depreciation, and short-term rental (STR) strategies, which could allow you to offset W-2 income if structured properly.

If not, I would advise researching this strategy.

My primary strategy is Fix and Flip, and I bring a DIY attitude to every project.

Things like neighborhood trends, tenant demand, and financing options will shape your strategy more than a basic 1% rule analysis.2.

I work with out of state investors and would love to connect and discuss strategies.

It can be very easy to get tangled down in the weeds of all the different strategies.

We are not real estate professionals.1) How would you handle the classification of the property in the 2023 tax year and would you utilize a STR depreciation strategy?

That is an interesting strategy.