Has anyone filed taxes yet as a W-2 employee who owns only STR, rents for on average less than 7 days per rental (STR), and materially participates (usually requires 100 hours or more in a year and more than anyone else)I’ve heard there are amazing tax benefits if you fall under all of the categories.

Our house is assessed at 415000 and the mortgage is 269000 and not declining because everything goes to interest, taxes, and insurance, nothing to principal.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Thanks to the Cost Segregation Study, the property investors were able to reclassify the property into shorter useful life categories resulting in first year depreciation of $203,600.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

However, due to crazy high rates and housing inflation, I still live in this house.

The program looks at location, property value, amount owing, interest rate, taxes, insurance, rents, condition, etc and several exit strategies.When we make an offer to buy, we can offer cash, subject to, wrap, seller financing, lease option, seller carryback and so on.Obviously if we wholesale the property, there is no carrying management needed, and if use a lease option to sell, the optionee is responsible for maintenance and repairs.

I’m coming up with: $4600 monthly rents$450 insurance $950 taxes $690 Cap ex, Maintenance and Vacancy 5% each $400 water/electric from current financials $130 landscaping from current Which leaves me right under $2000 for a mortgage payment just to break even, which is a purchase price of $375k with 25% down.

Market rents from the appraisal and/or the actual rents need to cover the mortgage payment, property insurance, taxes and HOA (if applicable).4.

Underwrite allowances for - Vacancy, Prop Taxes, Insurance, Utilities, Repairs & Maintenance, a Reserve Account, and Property Management. 

My question is what are the tax implications of this?