For more flexibility or quick closings, portfolio loans or DSCR loans are also options.Tax Strategy:You’ll depreciate the rental portion over 27.5 years, significantly reducing your taxable rental income.Expenses like mortgage interest, property taxes, insurance, maintenance, and property management are deductible on Schedule E.If you qualify for Real Estate Professional Status (REPS) or materially participate under the Short-Term Rental (STR) Loophole, you can use rental losses (including bonus depreciation from cost segregation) to offset W-2 income.Consider setting up an LLC for liability protection, but understand it doesn’t change how your rental income is taxed unless you elect corporate treatment.Mistakes to Avoid: Overestimating rent, underestimating expenses, buying without inspection, or skipping proper tax planning.

A well-designed asset protection plan can help reduce risk and keep your holdings secure, even in uncertain situations.To build a strong foundation, it’s wise to work with experienced professionals.

If your goal is to reduce that self-employment tax to a minimum, an S Corporation is the best entity to use.

It lets you live in the property while offsetting your mortgage and building equity — but set your expectations right: the goal isn’t immediate cash flow, it’s learning, reducing expenses, and setting up for your next move.If you can repeat that every couple of years, even 2–4 properties in 5 years is doable.

Here's how they compare to traditional assisted living facilities:1️⃣ Proximity with PrivacyADUs allow seniors to live close to family while maintaining independence, helping reduce feelings of isolation.2️⃣ Financial ConsiderationsWhile assisted living often costs $4,000–$8,000 per month, an ADU is typically a one-time investment with lower long-term costs.3️⃣ Familiar, Home-Like EnvironmentUnlike institutional settings, ADUs can be customized for comfort and accessibility, providing a more personal space.4️⃣ Flexibility and Long-Term UseAn ADU can serve different purposes over time—such as guest housing, rental income, or home office space.5️⃣ Greater Control Over CareFamilies can manage caregiving arrangements directly, choosing routines, providers, and support that best meet their loved one’s needs.This comparison can help families make more informed decisions based on both care and quality of life.

By living in one unit and renting out the others, you can drastically reduce your living expenses—or even live for free—while your tenants help pay down your mortgage.

The IRS would consider this a circular transaction without a valid business purpose, and it wouldn't reduce your tax liability.Permits and LLC ownership: Pulling permits through an LLC doesn’t help unless the LLC is the actual legal owner of the property—and if that’s the case, you can’t use a primary residence loan (5% down conventional).

It’s better to pay in segments tied to completed work milestones to reduce risk and keep the GC accountable.Clear contracts and inspections before each payment are key.

The property is held in his corp, but I’ll get a personal guarantee, and if appraisal value is lower than expected , I’ll ask for cross-collateral or reduce amount loaned out.

As others have said, focus on reducing expenses and increasing income. from there, educate yourself on house hacking as it's a great foundation and lower DP.