Advice on first property and developing a strategy
Hi all,
I'm new to real estate and am trying to develop a strategy to best achieve my desired result. I feel like the biggest detriment to my financial picture is paying almost 40% in taxes (single with no dependents). If I was able to eliminate all of a significant portion of my taxes, I'd be almost "doubling" my income, which would give me a lot more capital to deploy in the markets. For this reason, STR seem most appealing because of the bonus/accelerated depreciation without needing to be a "real estate professional." And as the accelerated depreciation is getting phased out by 2027, there seems to be pressure to take advantage of it before then.
The other option would be buy a primary residence but that would not help much on the tax side of things, although a duplex would allow me to save a significant portion of my income to deploy again in the market.
Also, is anyone aware of how long a property has to be a STR to take advantage of the tax benefits before converting it to a long term rental?
Any help and guidance would be appreciated!