So you could theoretically get into a house and end up leaving very little money into it in addition to having created tens of thousands of dollars or even hundreds of thousands of dollars in equity. 

I have a question that I'm sure I'm not the first to ask, even if I'm not sure how to ask it.

They remain distinct on Form 1040 with different tax treatmentOnly capital losses can offset capital gains (except for the $3,000 allowance)So even though material participation makes the loss non-passive, it's still an ordinary loss that cannot offset capital gains from stock sales on the return.The only way capital losses can become ordinary is upon the sale of your property, and that loss could offset your W2 salary.  

@Kwanza Price - Syndications are a great options and even some QOZs. 

Do I even need to say how ridiculous but unsurprising this is?

Even Northwest has alot of development going in, and the 303 is offering good support to connect freeway access over there. 

Even though we want a higher amount write off for depreciation but I get it.

The price points do make it hard to cash flow even with the lower interest rate subject tos. 

If you want to check out a pretty cool interactive map that shows tax data for every state, and even county, check this out from SparkRentalhttps://sparkrental.com/states-with-the-lowest-property-taxe...

I got so lucky - the first 3 years, during the depths of the pandemic, I had a perfect tenant, no problems, even during the storms.