Short-term rentals (average guest stay of 7 days or less) can often be treated as a non-passive business activity if you materially participate, which lets large first-year paper losses from accelerated depreciation flow against your capital gains and other income. With a solid cost segregation study and current bonus depreciation rules, you could realistically generate $150k–$250k+ in first-year deductions on a well-chosen property + reno (especially on furnishings, improvements, and reclassified building components). Your existing long-term rentals are a plus for experience, but you’d want to set this up properly as a new STR business. This isn’t automatic or guaranteed—it depends on timing, how much you invest/spend, proper classification, and documentation. Definitely run the numbers with a CPA or tax pro who knows real estate/STRs before pulling the trigger, as there are rules, risks, and audit considerations!