To answer your question regarding the pricing tools: Yes, your concern is absolutely valid.Airbnb’s native "Smart Pricing" algorithm is incentivized to maximize occupancy (which maximizes their service fees), not necessarily your profit.

These accelerated deductions are key to generating the substantial passive losses often needed to fully leverage the short-term rental loophole and potentially offset active income, assuming you meet material participation tests.It's a foundational move for maximizing tax benefits in this space.

It really comes down to balancing how much cash you want tied up versus how much you want to maximize monthly cash flow and growth potential.

HUD will finance multifamily deals like this via their 35-year term 223(f) loan - which is great for longer term oriented investors who want to maximize leverage at ultralow rates (low-mid 5.00% rates plus 25bps MIP). 

They want to minimize risk as well as maximize their return. 

Do you have other suggestions for what I can spend money on for necessary startup costs so that I maximize that deduction? 

Buying in cash will definitely maximize your cash flow and reduce risk, especially in today’s interest rate environment.

Best course of action is to work on better accountability/communication and perhaps push RAD to re-allocate some of their operational spend on personnel that can maximize the profitability of  it's portfolio.My observations of their business tends to focus on their Philadelphia operations/portfolio which I understand to be a sizeable portion of RAD'S holdings.

Before the rate increase of 2022, I actively worked to maximize LTV.  

A professional, engineered study provides a robust audit defense and maximizes the Net Present Value of tax savings over the asset's life, making the investment worthwhile for properties with substantial depreciable basis, including acquisitions and significant renovations, regardless of an arbitrary percentage rule.Lastly, on recapture: depreciation being recaptured later does not negate its value.