I have not done rent by room in many years but my son is currently doing it to live at reduced housing costs.  

Was hoping to find if cost segregation could offset or reduce tax liabilities on W2 income , which looks like it won't unless we are RE pros or it's a short term rental.

It's presumably more house, but if you reduce the interest rate, EVERYBODY'S rate goes down and therefor everybody wants the same benefit and it drives up housing prices by competition.They need a minimum of 3.5% down and then that increases their monthly payment because Private Mortgage Insurance gets added in. 3.5% of a $500,000 list on a house means they have to come in with $17,500 plus thousands of dollars in closing costs to to buy the house.

With strong property management, it can be significantly reduced while maximizing profitability1.

What it means is that when you file your 2025 tax return in 2026, your taxable income will be reduced by these losses. 

When your paychecks hit, they reduce your balance and save interest.

I am looking for ways to reduce my tax bill outside oftraditional strategies for a w-2 employee (Max 401k, HAS, etc).

Paul, the strategy is a great way to reduce living expenses while building equity and gaining landlord experience.But the numbers look a bit different in 2025 than they did even a few years ago:Purchase prices: Small multifamily properties in Minneapolis/St.

That usually means working with the seller on an extension and moving the file over to a more reliable lender.Now that I’m brokering, I rarely run into these issues anymore—but when it does happen, it’s usually because I took the risk of trying out a new lender.The bigger lesson here is how to vet a lender upfront to reduce the chances of this scenario.

By setting up the proper legal and financial structures, you can shield yourself, reduce your chances of being pulled into costly disputes, and often gain an advantage if conflicts do arise.To do this the right way, it helps to have the support of trusted professionals.