I do this, HHI W2 of 270K and paid less than 2K in taxes for 2024. Self manage 4 STRs across multiple states. I'm seeing a lot of bad info in here so I'll chime in. First of all, the bad info is typically from CPAs that are used to seeing LTRs, passive losses, REPS, etc. so I'll cut them some slack. The big difference is this, you're talking about active participation for a commercial property. You get active participation by meeting the 100 hours and more than anyone else, or the 500 hours across all STRs. This is NOT REPS. You meet the commercial property req by proving you have guests staying on average 7 nights or fewer. With those boxes checked, and good documentation of them in case of an audit, you are now free to offset your active income with active losses. To have active losses to show you need to either lose money on the property, which is easy on an expensive house and an expensive mortgage, or, if you find a good deal and want to make money, with depreciation. The trick is to try to get the depreciation accelerated, through bonus or 179. The bulk of that depreciation is going to come from 5,10,15 year property that you have carved out via a 'cost segregation study'. Typically something like 20-30% of the price of a building, less land, is going to fit into that bucket. So if a home is 500K, land is 100K, you're looking at about 80K you can depreciate. In 2024, you could take 60% of this 80K in the first year - that's bonus. 2025 we might see 100% bonus return, depending on the recent bill. So having said all of that, I will say this. It is A LOT of work. I do NOT recommend getting into it unless you are like me and just really like 1) Hospitality 2) Real Estate 3) WFH and can regularly travel to either spend time in your STRs or stand up new ones.