Optimizing investment strategy to increase paper losses?
Current Situation: My wife and I have been slowly getting into REI over the last 4 years. We currently have 5 SFH long-term rentals and a short term rental.
Up until 2022 we both had W2 jobs, but we just had our first baby and my wife is now full time mom and full time managing our properties. I'm learning about how she can now qualify as a Real Estate Professional and she will meet the qualifications in 2022 (750+ hours).
In my W2, I make about 200k a year and Id like to figure out how to pay less in taxes through passive losses in Real Estate but currently all of our properties cash flow well and even with write offs and depreciation we don't show losses. My CPA has advised that any cost- segregation studies would likely not be worth the cost on these SFH as they are around 150k homes.
Goals: Legally minimize taxes, build long-term wealth
Question: Is there an asset class or investment strategy we should be targeting for future deals that can optimize paper losses (maybe through cost-segregated depreciation?) while still being cash flow positive.
Any other recommendations for our situation? Thanks in advance!