That was something I wasnt prepared for when i first got started. 

Some are even getting creative with their deals, using strategies like seller financing or joint ventures to reduce their dependence on traditional loans.It’s definitely a challenging environment, but with the right strategy, there are still plenty of opportunities out there.

@DemarquisMaybe initially see  if you can do a Joint Venture with an experienced investor to get feet wet

I'm excited to see what our next venture together will be...

If you are reporting it on a schedule E (you are not taxed as a corporation or as a partnership in non-community property states) then no, there is nowhere on your tax return that shows your cost basis and your tax preparer likely doesn't know. 

Joint ventures on STR or on flips would help you scale 

Be prepared to followup numerous times.Highly likely the owner will treat your letter like junk mail.

Preparing to list rental after completing lengthy rehab. 

Prior-year losses can’t offset W-2 income but can be used for capital gains or future rental income.For audit risk, high earners using REPS face increased scrutiny, so be prepared with detailed records.For material participation, keep a time log with tasks, dates, and hours spent on rental activities like tenant management, repairs, and bookkeeping.

I recommend he look for a property manager who can figure this out and stop the bleeding, then maybe take over management in a year or two when he's better prepared.