This is advertised as a “protected” note as Aloha is supposedly fronting the first $100k in the line of loss.

When I attempted to do a similar flip in another county in Texas, where I was unfamiliar with the nuances of the area, my “slam dunk” deal ended up as a $40k loss!. 

That might cause you unnecessary stress and lead to dropped balls for your clients. 

Many rentals have losses on paper due to depreciation. 

If you own real estate in a self-directed qualified account, the 1031 exchange is unnecessary.

If places like yours are sitting at $2200 with no traction, you’re taking on unnecessary risk, especially as a first deal.

@John Zhang If your wife qualifies for Real Estate Professional Status (REPS) and materially participates in managing rental properties, there is no limit on the amount of rental losses, including depreciation, that can offset your W-2 income.

The worst thing is to pay for a service where you don't get a benefit.If you have STR's and actively manage them, then there is a good chance that you can treat the propreties as active instead of passive which will allow you to offset the losses with other forms of income such as wages, interest, dividends, gains, etc.

Passive Activity Losses: Are there ways to offset my W-2 income with rental losses, or do I need to qualify as a real estate professional for that to work?

They are now selling resulting in a 100% loss for investors.