Convert the Property to a Primary Residence: If you live in the property for at least two of the five years before selling, you may qualify for the primary residence exclusion, which allows you to exclude up to $250,000 of capital gains ($500,000 for married couples) from taxation.4.

Unless someone specifically wants to work with us, they have a tough scenario in terms of qualifying, extenuating circumstances... so on and so forth.... 

Investor qualifies for REPS2.

They probably got the Golden Visa where you only have to spend 500k on real estate to qualify and you get citizenship in addition you only have to spend 2 weeks a year in country. 

The ability to use leverage and reduce taxes in your highest earning years without having to put money into qualified retirement accounts is a great way to build wealth.So - If you own an STR:1.

To me, this meant longer vacancies between tenants to find a qualified tenant.  

At a high level, this is generally the path people take - we see a lot of people have success in this route - start building the portfolio with banks, low down payments, and then **generally** when you hit around 5 or so properties - it starts to make sense to switch over to LLCs, its too hard to qualify/deal with paperwork of banks and switch towards private lenders like DSCR Loans - (LLC friendly, easier) to scale past 5 or so.

Depreciation can create paper losses to offset rental income or passive income, and qualifying as a Real Estate Professional (REPS) or STR loophole can allow losses to offset W-2 income.This post does not create a CPA-Client relationship.

IF you cannot qualify for a full doc loan then a DSCR loan does NOT look at your returns.

You can compare both options and see which makes more sense with the rate you'd qualify for.