STR and REPS are great, but you need to learn about reverse passive planning if you want to play like the wealthy.The goal is to create legitimate nonpassive losses that can help reduce your taxable income.To make the strategy count for your 2025 return, the property needs to be placed in service by December 31, 2025.

Selling one property to add a liquid, taxable account for college/retirement flexibility is a totally rational move — especially with kids about to hit college and you wanting to retire in 10–14 years.One thing to double-check:Since the sale is 11/24/25, make sure the tax estimates line up (federal, Colorado, NIIT if it applies, depreciation recapture).

Your taxable gain would be the sale price ($250K) minus your adjusted basis (purchase price $200K + $10K improvements = $210K), so $40K is correct.

(Not multi family)I pay 8% but repairs are cheaper than if I paid myself as they get discounts and handle for free.

From a tax angle, that two-family is a solid start because you can use depreciation to reduce taxable rental income, and your cosmetic upgrades may qualify for deductions or depreciation (like someone above mentioned, definitely look into cost segregation), depending on the work.

When the property is sold, the depreciation recapture rules will apply, reducing your tax basis and potentially increasing your taxable gain. 

If you sell those, gains would generally be taxable, and depreciation recapture may also apply if any are held as rentals.I’d happy to walk you through how to structure it most efficiently when you're ready.Feel free to e-mail me or reach out anytime.

One advantage of using a HELOC is that, from a tax perspective, the funds you draw aren’t considered taxable income — it’s technically borrowed money.

If you sell investments today, your gains will be part of your 2025 taxable income.

One of the biggest advantages for the seller is being able to customized the intake of taxable income.