Quote from @Steve Wilson: I'm getting ready to start investing in the Port Huron market in SE Michigan and had a question about depreciation; I spoke with a CPA who told me that unless I'm a Real Estate Professional, I can only use depreciation to reduce the taxable income from my investment property, whereas Real Estate Professionals can use their real estate income to reduce the taxable income from their W2 job as well.

Quick question, would you rent to those on social security income and what kind of proof of income would be acceptable?

I'm sure they make a nice income from rubber-stamping S-corps.

An S-corp on top can make sense for active income (flips, wholesaling, property management), but it doesn’t usually reduce tax on pure rental income and can add payroll and multi-state filing complexity.With multiple states (NC/SC/GA/FL), you’ll also want to factor in state filing and nexus before stacking entities.You’re smart to think about protecting assets and your 22% bracket, but I’d model a simple version first (just LLCs + your current return) and only layer in an S-corp if the numbers and activity level really justify it.

But you can deny for credit, income, etc.

Market shifts have made strategy even more important lately.DSCR loans are based on the property’s own income rather than the borrower’s personal DTI, which makes them ideal for investors scaling portfolios or holding properties under LLCs.

.• Is it easier to finance as a Canadian using a DSCR loan, a foreign national loan, or personal income, and can projected STR income be used?

Most of our clients in similar situations don’t withhold once their real estate losses offset their W-2 income.

Quote from @Michael Baum: So we have been running a STR for going on 9 years now and the income or depreciation didn't change anything on the FAFSA for us.I assume you are using standard depreciation.  

My understanding is that it doesn’t make sense to do a cost segregation study now because we don’t have rental income to offset yet (we’re operating at a loss).