The loss reported on your K1 is likely considered a passive loss unless you materially participate in the syndication.

So sorry to hear about your losses.

It sounds like you both have a solid vision for your future in real estate, and it's great that you're taking proactive steps to build your credit and explore creative financing options like wholesaling.As a real estate accountant, I work closely with investors who are just starting out, as well as seasoned pros.

It's better to sell fewer home for retail than build homes at loss.

Overall, I have a system and take the long term approach/vision.

While you can’t use real estate losses to offset your W-2 income, you can use losses from one rental property to offset the income from another.

Let's hear your wins and losses with them and your plans for the future. 

Their losses appear limited to the moving expenses.

They ended up selling at a loss and learned a valuable lesson the hard way.If you wouldn't feel comfortable living in the area, then why invest there?

It's because you aren't really reading and taking in the information, you are trying for short cuts to get people to qualify your vision.