However, it may make it harder to fill the common equity piece as the more preferred equity there is, the less desirable the common equity becomes because of risk of loss.

If rents do not increase above $1900 that a loss if they do increase it seems it might be a low NOI.  

You would not be able to exclude it from your DTI until you filed with it on taxes (assuming you did so and did not report a loss). 

You can continue to invest in real estate and create more depreciation losses via cost segregation to offset the recapture though. 

Active = Income earned from Material Participation.Whether that's SMB, W-2, contract income, or prof real estate.This is income where ordinary tax is paid and losses offset other income.

Equity investments can suffer a 100% loss—the FDIC doesn’t want to pay this claim.2.

I do manage some small apartment complexes and generally there are not too many issues, but not zero.Also, for me as a PM I have fixed costs per unit, so to have 5 listings in 1 house would be cost prohibitive.Just food for thought, good luck!

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

If you already have a loss, cost segregation can make it a much bigger loss. 

My CPA had some very simple questions about how to handle passive losses and RLS refused to weigh in on the situation whatsoever.