It's a hobby for maybe 80% of the people who say they are wholesalers, and maybe 10% of the wholesalers in SA or any big city actually have a business. 

Assume that you're sitting on:$200,000 in suspended passive losses$150,000 in business losses$100,000 in expiring NOLsThe Magic Transformation:That $500,000 of "painful" ordinary income becomes your strategic advantage:Absorbs all $450,000 of those otherwise-stranded lossesLeaves you with just $50,000 net ordinary incomeMeanwhile, your §1250 gain still gets preferential rates:$581,820 at 25% max (unrecaptured §1250)$700,000 at 20% max (capital gain)The Plot Twist:What looked like a tax nightmare actually solved multiple problems.

Home prices have decreased over the last 18 months so there is lack of good options and values still above normal. 

When I have some free time, I'll research other options that won't cost a fortune for the small guy.

@Stan Mendoza There’s a ton of great info on here but a good starting point is understanding your financing options, getting familiar with the different property types, and learning about the area you want to invest in.

We cap the rate for utilities and actually added about 10% above our normal average this past year due to rising utility costs in our area for gas and propane.  

Financing & Loans: What are the best loan options for short-term rentals?

Are there other creative options I haven’t considered?

That might be an option.

Based on the information provided, you can only claim a capital loss when you actually sell or dispose of your REIT investment, not when the REIT simply returns a portion of your principal.