I currently invest in PA with plans to venture off in in New Jersey also.You have an option of hiring a property management company or self-managing if you decide to invest out of state.

It is the opposite of active income, which is income received from a job or business venture that requires active participation.

You can use up to $25k a year of those passive activity losses if you are actively participating in your real estate ventures ("small landlord" exception) and income stays under $100k a year.So yes it can be useful if someone happens to fall under these circumstances, but for anyone who is going to have over $100k a year of retirement / other sourced income, they may be out of luck.It's all timing - you are just using up those PAL earlier than if you waited for the rentals to start producing taxable income (they normally do if it is a good investment), or a property is sold and PAL are released to offset that income. 

My goal is that in 6 months I have legit offers on the table for rentals or other real estate ventures that allow me to move away from education.  

Someone could be venturing into something with some money to put into a deal as a GP and lose all their money too because they have little to no experience.You pay for experience.

However, drawing from my success with two STR properties, I ventured into "Arbitrage" to leverage my expertise.

That should have been worked out and put into the Joint Venture agreement you both signed.

Originally posted by @Tushar Shah:@Michael HenryHey Michael, I too am planning to venture into Milwaukee.

I guess that podcast host is either lying or desperate for deals.Or maybe the podcast guy has a close relationship with a couple wholesalers where they do trust and are comfortable working with them and this podcaster has trouble finding enough deals for his workflow.

Please lets KIT and once I get started I won't be afraid to venture outside of Louisiana