Great strategy because high earning W2 employees don't typically have ways to reduce taxable income.  

I have very little to put down, and there's no way I could get a conventional bank loan for $500,000 with my taxable income. 

@Juan Abreu you’re playing with fire for owner occupied properties for use with rentals because if you apply for the homestead discount (reduction in taxable value of your home) for Ooc homes loans look for that sort of thing and can deny you based on that.

Quote from @Madhul Shah: If an individual purchases a rental property and incurs expenses for property management, maintenance, and mortgage interest, how are these expenses typically treated for tax purposes, and what impact do they have on the individual's taxable income from the rental property? 

Specifically discuss with your CPA the ability to deduct depreciation expense over time, allowing you to deduct a portion of the property's purchase price as a non-cash expense, meaning you can lower your taxable income and potentially lower your tax liability.In other words, you can reduce your taxes by writing off expenses from your total taxable income.

Making money is taxable; saving money is not.I highly recommend reading Set For Life (a BiggerPockets book) by @Scott Trench.

If you purchase with SD IRA money, I assume the LLC is owned by the SD IRA, and you could potentially run into taxable withdraw issues if things are not handled correctly.

Since I am an investor with several LLCs owning property, an umbrella S-corp to own all of the LLCs may be the best way to allocate income to the most advantageous taxable income category.

Current taxable income isn't the objective, more like cost avoidance or recapture would best describe it.

Did you know that even it you don't declare the depreciation you are entitled to when you sell your property, it will be taxable gain?