Here’s how it can help if you currently own residential real estate:Improve Cash Flow – By taking advantage of accelerated depreciation, you can claim additional deductions in the early years of your property, boosting your cash flow.

In my area sellers want "as is" but with the market not being insane you can negotiate with the seller.

Income-Related Monthly Adjustment Amount (IRMAA): If your income exceeds these thresholds, you'll pay an additional amount called IRMAA on top of the standard premium.4.

Bonus, don't have to pay additional if you have Zoho One.

Look at other rentals in your market and see what they say.

Separating Y and taxing it as an S Corp could be beneficial if you're looking to take advantage of those tax savings, but only if Y's profits justify the additional administrative burden.Rental Agreement for Home Office:Yes, you can lease your home office space to your LLCs, but it’s crucial to keep everything documented and ensure the rent charged is fair market value.

I am starting out in my real estate investing journey and was hoping to see if fellow investors recommend pursuing short sales, banked owned properties and foreclosures, versus pursuing typical MLS properties or off market properties with distressed properties or sellers.  

I'm glad to hear ou say "invest in my local market".

I'm focused on building up the down payment now and trying to identify a good market(s) to invest in at the moment.

Which market is the best?"