What Zach is saying here is that you won't be able to utilize the "STR Loophole" which refers to using any net loss from the STR business to offset any income from other sources like W2 income or 1099 business income.

W-2 income, but it’s subject to passive activity loss limitations.

You would need to factor in the cost of the conversion as that would likely create a loss, then we would need to know your depreciation schedule.

Most of the ones we won worked out ok, but one wreaked so badly of cat urine even after stripping out all the soft surfaces we cut our losses and sold it to a handyman unfinished who wanted to live in it and refinish it himself.  

Maybe the “student” deserves some blame, but the punishment, in my view is more than served by the huge failure rate in the wholesaling industry, coupled with the near total loss on the educational investment.All illustrative, of course.

The P/L is just that, it shows all profit, and loss (expenses.)

Focus on turning it around and getting it rented as quickly as possible to minimize losses.2.

Buyer has ability to close, so it's a smaller loss to have the complete the purchase before the market gets worse. 

The reason this matters is that your "active losses" can only offset active income.

Do they wait until the renter is gone in November to do the repairs, and if so, do they pay for the loss of income while it's unable to be rented?