I think the confusion is between active business losses which can be deducted verses passive investment losses, which I believe must be carried forward, beyond a certain limit anyway.

Commercial financing carries more risk, and higher closing costs, but can be great if done right, on the right property, in the right location.

And most DSCR Lenders still are limited at a maximum of four units and don’t carry this option.11+ Units: For investors that are looking at multifamily investment properties with 11 units or more – then the loan options are going to look very different than the two other buckets (2-4 units or 5-10).

You can register your STR's at the link @Carrie Foley provided and the current response time is ~2 weeks based on my submissions.

It's a gamble doing this, but a great way to start... but imagine your renter bailing on you after a few months - can you afford to carry the place for a month or two?

Many fail to realize vendors will carry commercial general liability coverage and workers compensation (if they have employees), but many do not carry professional liability/E&O coverage.

If you are making more than $150,000, your rental loss, if considered passive, will be suspended and carried forward unless you can claim real estate professional status.

You're not "prohibited" from claiming bonus depreciation this year, but the resulting loss will probably be blocked and carried into the future years.

Excess business losses are capped for single individuals at $250,000 and for married individuals at $500,000, with any surplus being suspended and carried forward.

However, the real estate investments still offer the potential for tax-deferred growth and, under certain conditions, the ability to carry forward unused passive losses to offset future passive income.The concept of depreciation and bonus depreciation is particularly advantageous in the early years of an investment, allowing for significant upfront deductions.