The gist of it is that when you dispose of your entire interest in a passive activity in a fully taxable (as opposed to a tax-deferred) transaction to a non-related party, i.e., selling a non-grouped rental property in a taxable sale to a non-related party, both current and suspended passive activity losses generated by that activity can be deducted. 

If you qualify, you can use passive losses, like those from depreciation, to offset your active income.

For those of you actively working on fix-and-flip projects, particularly in dynamic markets like Houston, I’m curious about your approach to navigating today’s challenges.

Building relationships with wholesalers and staying active in local REI groups has also helped investors I know find opportunities that still pencil out.On the refi side, DSCR loans have been a solid option, especially for staying cash flow positive.

Plus some of it, especially in Jeff Davis County, are on top of an active earthquake fault zone.

I am Jon and moved to the Jersey City/Hoboken area two years ago. actively looking for investment opportunity now.

I know it may seem from everyone's eyes that I may be jumping the gun and going in blind, which is fair I have no experience in real estate or STR but I do have experience in business and have had a successful business when I was active in the market I worked in. 

Financial, Criminal History, Former Landlords critique, etc.

I suspect without money and active participation as LP, you cannot legally do what you suggest.Have you seen the underwriting?  

I saw an offer like this one recently with a Navy Federal bank statement that "had $700K" in the bank and it seemed legit.. but the LLC wasn't active with the state and they had assignment of contract language all over it.