Hi John - Under the passive activity loss (PAL) rules, you can deduct rental losses against passive income. 

I blame the politicians that create rules that allow this.   

Thank you.The general rule I go by, after flipping a ton of houses, is that I regret selling them now.If you buy them right (we’re an exception, as we buy at 7 to 15 cents on the dollar) and rehab them properly, you’ll get a ridiculous profit by keeping them, using strategies like the BRRRR method.Honestly, it doesn’t make much sense to sell them right away if you bought them right.

Now most of these I am keeping as rentals as they exceed the 2% YES 2% Rule, 75k rent 1700, 90k rent 2k, all in 230k (7 unit) rent 55k.Good luck to you 

State, County, City rules and regs every one is different.

County, but are you within the 1 or 2 mile radius of the city and have to follow their rules?

Here are some things to look out for to help you know who to take advice from when you are just starting out:(Note: There are exceptions to every rule.

Good call on looking into rental restrictions early — many condos have strict rules, which could limit your options if you plan to rent it out later.

We're still seeing deals that hit the 1% rule, have positive cash flow, and lots of potential for appreciation.

Budgeting: Many landlords use the 50 percent rule, which means that 50 percent of your rental income should go to covering fixed and variable expenses, other than the mortgage.4.