I’d also be thinking about your taxes from the start, understanding the difference between passive vs. non-passive income, and what works with your current income, and see what you can do to make the most of it.You can write off things like mortgage interest, property taxes, insurance, repairs, improvements, depreciation, and even take bonus depreciation on certain components with a cost segregation study.

If you did it in 2025 but didn’t meet REP/material participation, a lot of that loss could get trapped as passive.Caveat: bonus depreciation phase-downOne thing to keep in mind is that bonus depreciation is phasing down.

This involves buying a property, let's say a property of $1 million as an example, and using cost segregation along with bonus depreciation to write off our W-2 income this year.

Keep logs of your time spent on bookings, cleaning coordination, and maintenance.If you do that, yes, converting a small boutique hotel into STR units can be a powerful tax play with big upfront write-offs.

Know What You Can DeductIf your Airbnb is classified as an active business, you can deduct almost every ordinary and necessary expense tied to running it.Here’s a quick list of deductions most hosts miss:Cleaning, supplies, and guest amenities Repairs and maintenance Property management feesUtilities, Wi-Fi, and streaming subscriptionsAdvertising, software, and booking platform feesTravel to and from your property (yes, mileage counts)Home security systems and smart devicesProfessional fees — CPA, attorney, consultingDepreciation on the building and furnishingsPro tip: If purchased after January 19, 2025, you can take advantage of the return of 100% bonus depreciation under the One Big Beautiful Bill.

If you can speculate better than me you might get a bonus but it's not my strategy with long-term rentals.  

This is the one big bonus and perk.I still need to do the property inspection but I was thinking of asking for sellers credit for this situation.

well it only takes one :)  my play there on the penninsula has been scarcity lets see if that plays out on this one.  

Overestimate rehab costs and underestimate ARV everything you save on rhab or if you sell higher is a great bonus.

By materially participating, you can treat income as non-passive and use cost segregation with bonus depreciation to write off a large portion of property costs in the first year.