This will give you a clear understanding of its rental potential and whether it’s worth it as an investment.

My non-professional understanding is that those losses can only be used to offset income from that property.

@Adam Newman yeah, not understanding your statements, "I have $50k plus about 7k in the bank" and "take out a loan and go in with 20% from the start?".

I had to go that far away due to the insane cost of real estate in Boston, so I fully understand the predicament.

Each of these asset classes requires a deep understanding of market conditions, legal nuances, and financial structuring to avoid costly mistakes.For example, tax liens can seem like easy wins but come with complications such as redemption periods and legal challenges.

You and your legal, tax and financial advisors should review this transaction in greater detail, especially the PLRs, to ensure you understand the significant risks involved and are structuring the transaction as close as possible to the PLRs to mitigate some of the risks.

My understanding is profit from lending is considered "taxable income" and is therefore added to your income and subject to your normal tax rate after all deductions, etc.

Here's a post I made on "non-conforming" vs "illegal/unpermitted", understand they are NOT the same thing.

Make sure that your tax accountant understands this. 

Unfortunately, this problem waste a lot of my time that could be spent on other investments.I have used the same tax professional for many years and he is very educated, but also much older than me and it's hard for me to understand all the reasons he has expressed why is better to put the rental on my personal tax returns.