You’re on the right track—keep working closely with your loan officer and possibly a real estate attorney or estate planner to ensure the transaction is optimized both legally and financially.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice.

Quote from @John Barrett: @Tim Cornwell I appreciate your optimism with the passage of this legislation but I'll be honest I am very skeptical this will have much if any real impact on the housing shortage in WA. 

LTRs offer stability, while STRs can produce higher returns, but come with more risk and management needs.STR Tax Advantage: If you materially participate (100+ hours and more than anyone else), you can qualify for the STR loophole, allowing bonus depreciation to offset W-2 income, without needing full REPS status.Use Cost Segregation: Ask your CPA about doing a cost seg study to accelerate depreciation, especially if 100% bonus depreciation returns in 2025.Backup Options: If managing real estate feels overwhelming, consider a Delaware Statutory Trust (DST) for a passive 1031 route, or an installment sale to spread the tax burden over time.Meet with your CPA and 1031 intermediary to ensure your reinvestment strategy is tax-optimized and aligns with your comfort level on risk and management.This post does not create a CPA-Client relationship.

It has achieved a 3% appreciation for this century.  

This is the type of return that can be achieved via money market with virtually no risk or effort.  

And most importantly, we implement systems to control the experience and drive consistency at scale — especially as portfolios grow.So while the general principle is well-known, the execution — and its role in long-term performance optimization — is often underestimated.Thanks again for the engagement — always valuable to exchange operational perspectives.

No matter the strategy, setting up the right legal structure (like an LLC) is key for asset protection and tax optimization, and having a real estate CPA on your team will help you maximize deductions and stay compliant.

Whether you're aiming to build a passive income stream, diversify your investment portfolio, or achieve financial independence, having a well-defined strategy will guide your decisions.Remember, the real estate market is dynamic, so staying informed and adaptable is key.

While it's easy to get swept up in the excitement of finding deals, overlooking these key areas can significantly impact your long-term success.A solid tax plan helps you take advantage of deductions, optimize your investment structure, and retain more of your income.

Moving forward, I plan to pivot and invest the majority of my income in real estate with the goal of appreciation and eventually achieving cash flow-positive properties.