We share the profits and split losses if any 50/50.  

Its great that you have saved some money and have a desire but investing involves a risk of loss.

Is that why you’re leaning toward renting, even with a $1K/month loss?

To avoid unnecessary liabilities, delaying acceptance or exploring a cash alternative may be the safest financial option.This post does not create a CPA-Client relationship.

If area or units aren't good enough to easily attract sec 8 a lot of these rougher area investments turn into huge losses.

REPS does not relate to STR's.For short-term rentals (STRs) with an average rental period of seven days or less, you don’t need REP status to offset losses against other income.

The proper answer is "it depends" I don't know anything about your case.I do prefer simple over unnecessary complexity.

Though at 1525/mth it is projected to cashflow a little less than 100/mth  -- the numbers do not include what I like to call reality numbers (vacancy loss, maintenance, capex reserves).

While personal loss is difficult and understandable, running a business that directly impacts property owners requires a contingency plan.

However, the depreciation claimed while the property was a rental must be accounted for upon the future sale of the personal residence, which could increase your capital gains tax liability.The adjusted basis of the property (original cost minus depreciation) will be used to calculate gains or losses at the time of sale.