For many investors in similar situations, the end goal is to have real estate losses help reduce W-2 income — but that’s not something that just happens automatically.

I don't want to pay federal income taxes on the earnings I give them, the "interest" payout.

I don't want to pay federal income taxes on the earnings I give them, the "interest" payout.

Refi the current rental to reduce the rate and buy another...just don't overextend.

Japan buy their own debt, reduce US debt.  

I would recommend reducing that.  

Spending $50K over budget upfront could break the BRRRR math.If leaving $50K in the deal significantly reduces your cash-out refi or increases your payback period, that defeats the BRRRR strategy.

An S-corp on top can make sense for active income (flips, wholesaling, property management), but it doesn’t usually reduce tax on pure rental income and can add payroll and multi-state filing complexity.With multiple states (NC/SC/GA/FL), you’ll also want to factor in state filing and nexus before stacking entities.You’re smart to think about protecting assets and your 22% bracket, but I’d model a simple version first (just LLCs + your current return) and only layer in an S-corp if the numbers and activity level really justify it.

It keeps your personal assets safe and is easy to manage.If you're earning a good income and want to save on taxes, an S Corp might be worth considering.

The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.You should focus on increasing earnings and learning how to manage your budget.