With 100 % bonus depreciation still available in 2025, you can get big first-year deductions.Your entity setup also matters.

Over seven years that’s $100K+ saved, which easily offsets the higher purchase price.Tax Strategy (Crypto Offset)A cost-segregation study should allow about $145K (around 25% of the purchase price) for bonus depreciation.At a 35% bracket, that’s roughly $50K in Year-1 tax savings — almost my entire down payment.After depreciation, my effective cash basis in the deal is around $14K.Deal SummaryOnly $65K down on a $590K property (about 11%) = strong leverageBlended 3.4% interest rate when market rates are 6–7%Assumed first loan saves significant interest costPositive cash flow, professionally managed3 bed / 1 bath units in a stable rental market10-year appreciation at 3% annually = roughly $790K future valueEstimated $200K+ equity gain over 10 years (appreciation + paydown)$50K+ Year-1 tax savings through cost segregationBig PictureLow down payment, cheap financing, hands-off management, and strong tax benefits make this a solid long-term hold.

Bonus may apply to some items.

You can also take advantage of travel, home office, and management deductions without overcomplicating things early on.Creative approaches: Some investors in your situation start with a small rental nearby and later use cost segregation or bonus depreciation to accelerate write-offs and offset W-2 income.

. - Sunroom or bonus space.

Many of my clients are spread across different states, and with today’s tech, everything from cost segregation studies to entity planning can be handled virtually without sacrificing quality.A great real estate CPA won’t just “do your taxes” — they’ll help you plan ahead, so you can take advantage of depreciation, 100% bonus write-offs (under the new 2025 bill), and passive/active loss rules that most general accountants miss.If you’re already at three doors and thinking strategically about deferral, you’re at the perfect stage to start working with a tax strategist who can map out the next few years — not just this filing season.Are you leaning more toward holding your properties long-term, or planning to add more STRs this year?

I’m based in Philadelphia, so bonus points if you have local experience!

Furthermore, you want to know whether the state recognizes bonus depreciationSince you are a resident of California, you want to understand how having an LLC subjects you to the $800 annual Fee.Best of luck to you in your search.

Bonus if it has below market financing.  

It makes a big difference in how everything ties together.Strategies like bonus depreciation or cost segregation can help you accelerate write-offs and boost your cash flow.