I don't want the yearly cost of the asset protection to turn good investments into bad investments..3) How can I deduct expenses from taxes?

@Pedro GuillenDitto to what Ken said above, I don't think size matters if it's a good investment, but all of those factors are things to consider, and along with repairs, systems, and overall condition, you’ll also want to understand what’s deductible from a tax perspective.

The upfront deduction is great for cash flow, but you need to model it against your tax bracket, exit plan, and long-term wealth goals to see if the ROI is truly there for your situation.

MTR classification for 2025 affects whether REPS allows you to deduct the losses against ordinary income.

The reason I don't have residency in Spain is because they would tax me on ALL my income at a rate much higher than what I pay in the US with my real estate deductions.

Is all or any of that deductible?

Optimism results in financial losses.Subtract Every CostYou must deduct all expenses from the sale price to determine the maximum offer price, including:RenovationProject managementClosing costsHolding costs (taxes, insurance, utilities, HOA)Selling costs (commissions, fees)Profit (this is not optional)A surprise cost bufferA time buffer for unexpected delaysIf you miss something, you will lose a lot of money.

With the current 80% bonus depreciation, it translates into a $40k deduction and $10k in tax savings, give or take.

From my experience the studies cost around 4K, and you get roughly 50% of your purchase price as a deduction.

One thing a lot of people miss - if you're gonna get hit with short-term capital gains anyway, see if you can defer some income to next year or accelerate deductions this year to offset it.