For example, if you had a full time job (2000 hours per year), you'd have to justify that you did 2001 hours doing real estate related activities.See the IRS' page regarding activities:  https://www.irs.gov/publications/p925#en_US_2022_publink1000...The other question is why are you have so much passive losses to bring onto your main 1040? 

In 1984 pyschologists Daniel Kahneman & Amos Tsversky showed how humans tend toward irrational risk-seeking when facing an expected loss -- a loss like holding cash (equivalents) during inflation.  

When asked why, he stated that because I am a passive investor (limited partner), I can only apply passive losses to my passive income.  

Not too mention tenant damage, vacancy loss, eviction costs… these are just a few things that come to mind that I’ve had with my small portfolio over the past 15 years or so. 

Insurance in most cases only cover mold/fungus IF the mold was caused by a covered loss.  

Fund that flip is smaller, but also less investors, so at least the deals are not funded in just a few seconds.Both platforms suffer from some of the problems that pretty much all of the hard money loan platforms do: not enough volume for someone wanting to maintain a large portfolio, not enough conservative 65% LTV loans, too may loans and judicial only states (where it's extremely expensive and time-consuming if you need to foreclose which can cause losses), and single note risk (i.e not diversified).

If property insurance, it should already be covered by your insurance company and you can ask them to add loss of rental coverage.

I at least try to avoid losses caused by the departing tenant.

Certain styles that have the pull chains positioned where a straight downward pull actually interferes with the light shade are more problematic, but I do make it a point to show Tenants at move in how to properly pull the chain at an angle to avoid that issue.

IMO your safety from an investor standpoint comes with building a large portfolio.If you can keep it "under the same roof" even better.Less people to speak with and less drama with logistics and correspondence.The bigger the portfolio, the safer and the better ROI will be long term.Our most unsatisfied investors are the one's that own 1-2 properties and get pissed off with me and my company if they go vacant.Unfortunately, turnkey providers aren't magicians or God and can't wave a magic wand and turn 2 properties into 10 over night lolFolks that own 7-8 or 10+ properties with us aren't bothered if 1 or 2 are vacant, as the others are still performing and cover any losses on those that aren't.Thanks and much success