You've got some strong cash flow in those properties and I love the fact that you're looking to leverage one of them to grow.From a tax perspective, a cash-out refinance doesn’t create a taxable event since you’re borrowing against equity, not selling.

And I'm a HUGE proponent of building up large taxable accounts as they give you a crazy amount of flexibility both before, and during retirement. 

Quote from @Chris Seveney: Quote from @Doug Smith: The Federal Reserve lowered the Federal Funds Rate by 1/4%, so why did mortgage rates rise?

Running an Airbnb or short-term rental can be an incredible cash flow machine — but it can also turn into a tax nightmare if you don’t know the rules.Here’s the good news: the IRS treats short-term rentals differently from traditional long-term rentals — and if you structure things right, you can unlock powerful deductions, reduce taxable income, and keep way more of your profit.So, let’s talk about the Airbnb tax secrets every host should know in 2025.1.

Flipping now makes the profit taxable as regular ordinary income, not capital Gain, and you cannot do a 1031 either.This post does not create a CPA-client relationship.

When the property is eventually sold, the depreciation recapture rules apply — meaning the previously accelerated depreciation will reduce your property’s tax basis and may result in additional taxable gain upon sale.

That pushes large deductions into early years, lowers taxable income, boosts cash flow, and strengthens your hold strategy.Risks & What To WatchDIY studies or unqualified firms: If the cost segregation report isn’t solid, audit risk goes up.

This means a portion of the previously taken depreciation will be subject to taxation, effectively lowering your adjusted basis in the property and potentially increasing your taxable gain at the time of sale.

@Adam Danes This situation is common for investors who minimize taxable income.

House hacking not only lets you live for little to no cost, but from a tax perspective, you can also deduct a portion of mortgage interest, property taxes, utilities, repairs, and depreciation against rental income, potentially reducing your taxable income.You’re already ahead of the game by budgeting, and planning ahead.