Hey everyone,Looking for some insight and advice from investors who’ve moved into small multifamily (2–4 units) as pure rentals, not house hacks.A little background on me — my last property went a little crazy with the BRRR approach.

For example, in NJ we are basically pure ad valorem system, w/o homestead. 

It lets them close fast, renovate, lease up, and then refinance into a long-term loan based purely on property cash flow.

Are you looking for a pure investment property or planning to house hack and live in one of the units?

They are purely transactional..

So from a pure tax deduction standpoint, nothing changes by simply moving the title to an LLC.Here’s what does matter for tax purposes:Your ability to use losses: Even if the property is generating a paper loss (thanks to depreciation, repairs, etc.), you're often limited to $25,000 of passive losses per year—and that phases out completely if your modified adjusted gross income (MAGI) exceeds $150,000.Real Estate Professional Status (REPS) or the STR Loophole: To use rental losses to offset W-2 or other active income, you must either:Qualify as a Real Estate Professional (750+ hours, primarily in real estate) and materially participate in the property.Or, if it's a short-term rental (average stay under 7 days), materially participate (100+ hours and more than anyone else) to convert it from passive to non-passive—even without REPS.Standard deduction vs. itemizing: You mentioned your CPA said deductions didn’t help due to the standard deduction.

For loan two, you’ve already used FHA, so look at conventional for another owner‑occ (after living there per occupancy rules) or a DSCR loan for a pure rental if the rent covers the payment; pick based on cash flow and paperwork tolerance.

Above that, it won't be purely a rental. 

The numbers are a little tight for a pure rental

Originally posted by @Charles Kamen:This is purely hypothetical but I had an idea that I could explore if it's even legal.