Hi everyone,My wife and I have shifted our business to acquiring short term rentals over the past few years.

If you get in to a rental with low margins (can happen early during a BRRRR or refinance) hoping for increased rents in the future or appreciation to happen or rates to drop to refinance again and the market shifts where rents drop below your mortgage payment that is being over leveraged.

., you have a planning opportunity.Practice manipulating key variables to create alternatives - generally in one of three ways, shifting across periods, shifting across taxpayers, or converting the character.No one actually uses the word loophole in accounting.For example, what the hell is a STR loophole?

I have 12-doors in Detroit and they are mostly on 12-month leases.That said, the market has shifted a lot to month-to-month.

Assignment of income doctrine prevents income shifting like this.Whoever owns the property producing the income is taxed.

Given you're positioning yourself into cash flow deals not equity, then I don't think it makes sense to take a deal that's breakeven just for the appreciation and tax benefits because there are lots of challenges in rehab projects and with the market shifting and softening rental demand, you should always have some margin.

I'm sure like many of you, I've found myself at a crossroads as I shift from a younger fun focused mindset into a determined investor with a plan of financial freedom. 

But given the recent shift in the market I am back on due diligence table.

Most recently, absorption has declined by 1.1 million SF over the past 12 months.While demand on the whole has been negative, shifts in post-pandemic shopping behavior has benefitted neighborhood centers.

My advice here would be a small mindset shift and switch to thinking in terms “how can I make a property cashflow…” vs.