Be ready to work, for at least the first year,  if you want to be able utilize the STR Loophole and kill it with a cost segregation coupled with bonus depreciation.

.✅ Better timing for high-income investors looking to offset gains or active income.If you’re planning to close on a property this year, timing your purchase after that date could mean tens of thousands in bonus write-offs.When It Might Not Make SenseLike any tax strategy, it’s not one-size-fits-all.Avoid it if:You plan to sell the property quickly (depreciation recapture will come back).Your income is too low to benefit from large deductions this year.The property’s cost is small (under ~$200K), since the study cost might outweigh the savings.But for larger portfolios or active investors with strong income, it’s a no-brainer.The Bottom LineCost segregation isn’t some hidden loophole — it’s one of the most effective, IRS-approved ways to accelerate tax deductions and build wealth faster.If your property is purchased after January 19, 2025, you can take advantage of 100% bonus depreciation again — meaning faster write-offs, stronger cash flow, and more money compounding in your portfolio.✅ Own rentals or commercial properties?

There is a long list of pro's and con's feel free to reach out if you need any advice or want to talk REI loopholes or tips.

As you grow, you’ll want to understand how different types of rental properties interact with your income, especially the difference between passive and non-passive income from a tax perspective.There are also some unique tax benefits and deductions available since you’re in the military; it’s worth looking into how your service benefits and possible home exclusions might work with the type of real estate you invest in.Understand the STR loophole and active participation as both can save you taxes.

Passive loss strategies such as REPS and the STR loophole are known audit triggers so your friend would want to do this the right way. 

For my STR investor friends living under rocks - or have had a failed offer or transaction on the vacation rental investment they were waiting for..don't lose faith and there is still material participation hope! 
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I have been looking to talk to investors as well and when everyone is together you get more loopholes, tips and introductions to help build each others REI portfolio.

Clean records from the start will save you a lot of headaches later.Understand the REPS, STR loophole, and Active participation tax rules so that you can save taxes.

As you grow, you’ll want to understand how different types of rental properties interact with your income, especially the difference between passive and non-passive income from a tax perspective.There are also some unique tax benefits and deductions available since you’re in the military; it’s worth looking into how your service benefits and possible home exclusions might work with the type of real estate you invest in.Understand the STR loophole and active participation as both can save you taxes.

The right tax strategy can often be the difference between a good deal and a great one.Big topics to understand early on: REPS (Real Estate Professional Status), the STR Loophole (Short-Term Rental Loophole), Active Participation rules, and how an S-Corp can be used for Non-Passive Income.