The financial viability of the strategy is maximized when a Cost Segregation Study can allocate a high percentage of the purchase price to short-life assets (like furniture and fixtures), leveraging the current 100% Bonus Depreciation to create a substantial "paper loss" in the first year.To use the 100% Bonus Depreciation against your 2025 W2 income, the STR and its eligible assets must be fully "placed in service" by December 31, 2025.

Quote from @Kay Sam: First and foremost thank you for posting this.. takes a lot to post on an open forum about a loss especially when you have very new to the industry.

“Core” inflation (excluding food and energy) also slowed to 3% annually, thanks largely to easing shelter costs, which make up over a third of the CPI calculation.📊 Bottom line: This is exactly the type of report the Fed wants to see before lowering rates again.

I'd focus on the big 3: housing, auto, and food. 

So at this point, I either sell at a one-time, bigger loss,  or keep renting it out and take smaller losses every month until the market recovers. 

But losses are rarely realized, because most homeowners aren’t selling into weakness.If you're looking to build long-term wealth through real estate, buying now may beat waiting years for a “perfect dip” that never comes.For new investors, especially, the risk of inaction can be bigger than the risk of “buying too early.”If you’ve been sitting on the sidelines because you’re scared of a downturn, that’s exactly the mindset that holds many back from building real momentum.Don’t wait for perfection.

I ended up taking a 15k loss after stupidlyletting them manage my duplex, 6 months into our term.

These are the exact areas I dig into as well, because they quickly reveal whether someone can realistically meet the participation requirements that drive STR tax benefits.Understanding W-2 demands, average stay length, hands-on involvement, and the dynamics with a property manager tells you almost everything about how the STR will perform and how the tax strategy should be structured.Most investors underestimate how much these factors impact both their numbers and their ability to use the losses.

We ended up going way over budget and turning it into a single family residence and selling at very little profit due to loss in labor.

But your property still is not a loss, yet.