Not that it would take an MI6 operative to tell that something was off with that dude.

Living, but either way you could try speaking with existing owner/operators groups in the greater bay area, or even central coast, looking to expand their portfolios for a joint venture.  

Also I operate 5 STR's myself over 95% performa so I should have some experience in this realm to provide some insight. 1.

You're essentially buying into a partnership with your friend with the partnership owning and operating the property.Now, the financial side of that gets more complicated and would generally include an advanced proforma/financial model that includes a GP/LP equity waterfall schedule that is based on how you and your friend agree that you will pay her and also share the profits.I assume that won't make sense to you right now, but I'll send you a DM.

I ran into this recent TurboTax article  that led me to believe it was possible: Second, you may have a net operating loss (NOL) if the Section 1231 loss is large enough to reduce your other income below zero.

@Jessica HowellIn the operating agreement we typically put like $1,000 as initial contribution.

I have several single-family homes here locally, operating as short-term rentals and long-term rentals.

Would you be open to a quick zoom / phone call so I can ask a few more questions on how you run your operation? 

My easiest and safest bet would be to just build the outside storage lot.

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.