Tax Advantages
Depreciation is the most powerful tool. Wooden buildings depreciate over 22 years (4.5% annually). A 25-year-old wooden house can be depreciated over just 4 years — extremely aggressive deductions. Rental income deductions include: depreciation, taxes, management fees, insurance, repairs, mortgage interest, and travel costs. Capital gains tax is 20.3% (long-term, 5+ years) vs 39.6% (short-term).