The extra cash flow that results when you don't have to pay taxes can be used to upgrade the property or purchase additional properties.

You needed to sell before Jan 2025 to benefit from this rule.Right now, you owe capital gain taxes, unless you do a 1031 exchange or implement some other tax deferral strategy. 

If the property qualifies as a separate activity, you may be eligible to claim bonus depreciation through a cost segregation study, which can provide substantial upfront deductions — particularly beneficial if you are in a higher tax bracket.However, if your income level is lower, the cost of the study may outweigh the benefit.

There’s no tax benefit to putting the property into an LLC—it’s primarily for legal protection.

Whether this is a benefit (i.e., additional deductions) is case dependent, but segregation typically provides benefit compared to not segregating.You can generally apply bonus depreciation, but the phase-outs apply (don't seem applicable here given the years placed in service).Tax positioning is also relevant here.

My plan is to run some wholesale and fix/flips to begin and eventually open my own shop and hire some additional agents at that point, but that's still a few years out. 

Wander has been pretty persistent about trying to get me to list my FL oceanfront beach villa on their platform with their newer Wander Listed program. The fees are 8% and this would just be an added channel to comple...

Tax benefits are great but not if it's a bad investment. 

Another option is to roll it into a self-directed IRA, which lets you invest in real estate without withdrawing or paying penalties.That route keeps the tax benefits while still putting the money to work in real estate.

Happy to give additional insight if there's a specific scenario you're thinking of.