Cash Flow Vs Equity: Taxes and W2

[Antonio A.]

HI-

We are beginning RE investors based out of Orange County, CA, and Metro Washington DC. My wife and I have high-paying W2 jobs and are looking to invest in RE to offset taxes associated with our W2 jobs. Cash flow is nice but not required. We are more interested in equity. If you were to invest in equity where would you invest? If you were to invest in cash flow where would you invest? We would also welcome any tax strategies, informal advice on how to offset W2 income; rental properties with negative cash flow, Air BnB... etc. 

Cheers 

Tino 

[David M.]

@Russell Brazil

FYI:  Unless its changed, the phase out starts at $100k AGI and ends $150k agi.  I just remember its a "$2 for $1" phase out rate (or $1 for $2 depending on your point of view)