An option you could utilize would be to take out that appreciation via a HELOC or Refinance and if you use those proceeds to purchase additioanl real estate then you would be able to depreciation that new property.

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All, Has anyone utilized BRRRR in the short term rental space?  

Take your annualized collected rents (plus, other income if there is any - pet, utility bill back etc) and subtract your annualized expenses.

Add to that in rental properties that tenants pay utilities, so the owner isn't saving money.

Make sure you have the correct STR insurance.You can write off supplies, utilities etc as business expenses.

I have met overly nice landlords that gave a tenant 6 months of free rent and a 4-year long, $300 under-market rent lease extension that the tenant can cancel anytime but the landlord cannot - all because that tenant had some utility service interruptions due to a rehab downstairs.

One important thing to note, you will be forced to turn around and use the proceeds from the sale to purchase new properties pretty quickly in order utilize the 1031 exchange or pay capital gains tax.

Airdna shows yearly predicted income for the address of 111k, and it looks like our yearly costs to break even on the property would run about 38k all in for mortgage, insurance, taxes, utilities, maintenance, etc. 

Do I simply divide the land (with utilities installed) and sell 4 lots, or should I partner with a builder to put 4 homes on there and then sell?