I have an LLC and I would like to maximize my tax deductions as well.

It is booked around 95% all summer long (we rent it both as an entire home or as individual rooms, to maximize potential) and it slows down to about 40-50% in the winter months.  

This allows us to maximize leverage and increase profits. 

Originally posted by @Jay Hinrichs:@Mindy Jensen  is the 121  queen I myself have done it 6 times since I bought my first home in 77.. and will do it one more time before I call it quits.. now I was fortunate that all of them were in the SF bay area and 2 were in Portland.. so I have literally made millions tax free..the specialness of this is unlike when you own rentals there is no recapture and huge penalty when you sell.. you sell get your gain tax free no recapture its by far the best treatment in the US real estate tax code in my mind other than or equal to 1031 if your goal is to roll up and give to heirs at stepped up basis.but yes many builders have done this over the years.and yes you can value add you can do what ever it just has to be your primary and live there 2 of 5 years.. they darn near changed it to 4 years in the new tax code but it got bounced last minute and remained the same.. so in my humble opinion yes its common and maybe a lot of folks don't know it.. but it is truly special and sure has treated me well personally.now if you live in an area were there is limited to no appreciation its not really a factor.. if you bought a home for 120k and sold it 15 years later for 160k  well not going to make a huge differencebut for those in areas likeThanks sir, I live in Omaha so appreciation isnt that great but I've recently come across this idea as a way to maximize profit if I decide to build, live, and sell a SFH. 

I still don't get the early steps of commercial pre-approval especially how to maximize credit to minimize interest rate?

Investors views on things can change with how much someone makes a year and net worth with liquidity.Example a doctor bringing in 700,000 a year income might take 5% return that is passive with tax benefits all day long.Conversely  an investor that is younger in age making 50k a year and trying to quit that J-O-B might be looking to maximize cash flow today and might care less about tax savings or equity growth way down the road.

Even AirDNA is projecting 60-70% occupancy rate, we will drive our occupancy rate to near 100% to maximize revenue.

As an investor myself I understand wanting to keep expenses as low as possible to maximize profits.

I could also do a mix of 4 and 3, which would be to rent it for 3 years, maximize rental gains then sell it (to qualify for the tax free owner occupant gains) - although I would need a CPA to breakdown the depreciation recapture rules for me at that point, LOL. 

However, to maximize the benefits of investing in real estate, it's essential to understand the impact of taxes on your investment and implement strategies to improve your real estate equity.Understanding taxes can help real estate investors maximize their returns by identifying deductions, credits, and incentives that reduce tax liability.