I am in one of the higher tax brackets and could be saving around 40k~ a year on taxes with this.

I am about to graduate college in May 2025, and will be making about $120k (pre tax) in my full time job postgrad (Washington DC area).

@Daniel MadhavapallilYou should hire a tax professional. 

If your friends have a rental they should hire a tax professional. 

Quote from @Joshua Tucker: What specific tax benefits can high net worth individuals receive from building real estate on tribal land?

Focus on tax-saving strategies such as cost segregation studies and bonus depreciation to accelerate deductions.By qualifying as a Real Estate Professional (spending 750+ hours annually and materially participating), you can offset your wife’s S-Corp income with real estate losses, reducing your tax liability.

However, a good real estate accountant is worth what you pay them because they will save you time and money. 

Fannie/Freddie (Conventional) loans aren't just about rate and transfer taxes. 

Now 3 of the 5 taxing authorities give a credit for doing them on time which can be as high as $150 savings for me each month and I am not sure I would get that using Avalara.

I recommend two accounts: checking and savings.