When the syndication is sold in future years, are the gains, depreciation recapture, and distributions also taxed as active income?

While these losses won’t immediately offset W2 income without REPS, they can be carried forward to offset future rental income or capital gains when you sell the property, lowering your tax burden long-term.This post does not create a CPA-Client relationship.

Converting the entire property to a rental later allows full deductions but eliminates primary residence tax benefits, potentially increasing capital gains taxes on sale.

@Sheena Varghese For flips taking over a year, the IRS treats them as business inventory, so profits are taxed as ordinary income, not capital gains, regardless of the holding period.

Once you gain that experience, it may become more efficient to delegate the task rather than managing it on your own.

The sewer main is one of the most important, and most valuable parts of the property...so, why wouldn't we inspect that too?

@Chris Grenzig  The chart on Wikipedia is interesting, its showing the population gains/losses from 2020 to 2023. 

Gradually transition to larger, higher-end projects as you gain confidence and expertise, balancing risk and reward.

+1 with @JD Martin and @John Underwood.I do get the info is valuable for those that are just getting started.

If you're able to get tenants paying over market rents, you can also gain a lot of interest because of the heavy cash-flow.