STR Market Exploration and Tax Efficiency

[Sam Mishra]

I am a W-2 earner currently house-hacking a multi-family property in Jersey City, NJ. I am actively looking for my next investment and considering a Short-Term Rental (STR) specifically for the potential tax efficiency. I heard that 2025 was a terrible year for STR and many predict the same expectation for 2026.

What's your advice? Should I be serious for it?

[Ryan Moyer]

If tax help is your primary concern you would want to focus on markets with low land value, as the percentage of your purchase that is attributed to the land is not depreciable like the rest of the house is.