Often the equity partner has a lot more risk in the venture (losing all the investment money) where the work partner could walk away with the loss of time and effort.

Keep in mind that passive losses from rental properties can only offset passive income unless you qualify as a real estate professional.

I filed a claim for loss of rents. 

Exchanger and not Qualified Intermediary shall bear any risk of loss while funds are being wired or transmitted to or from the Exchange Account.

This new property management company was just as ineffective, and for nearly two years, I struggled with bad tenants, constant repairs, and growing losses.

Just to set the record straight, because Praxis Capital was mentioned…I have been investing in real estate since 1989, and Multifamily since 2002, with zero investor losses.  

I had the funds in savings, but this year and most of next year will be a loss until I recoup these expenses.  

I would avoid, suffered huge losses due to 6+ month vacancies between tenants and very expensive turn repairs (~4k after only 1 year).I will update this post if my experience changes for the better 

If you're negative can flowing property is going to appreciate, then it may make sense to hold on.A loss is still a loss, and I would not hold onto a deal because I'm getting a write-off.

Since you file jointly, if she meets the material participation test, you can offset your W2 income with STR losses.