04/24/2026
Two investors.
Same sentence.
Completely different outcome.
Most high earners think owning real estate is the same thing as building wealth. It’s not.
A long term rental gives you a tenant, a mortgage, and a passive loss that sits on Schedule E doing nothing for your W-2 tax bill.
A short term rental under the 7 day rule, with 100 hours of material participation and a cost segregation study done in year one, is a completely different machine.
The STR above returned 56 percent in year one. The S&P returned 10.
Same starting capital. Different strategy.
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