This allows the investor to benefit from future buying opportunities in the REIT without triggering any capital gains or depreciation recapture tax events.

You might look into some of the real estate crowdfunding sites that allow you to invest only a few hundred dollars into whatever project you like and build up savings in the meantime so that you can take down one of these deals in the future.

@Michelle Glover a suggestion for any future flips.

Neither one of you are going to want to have to explain to your future spouses or significant others that you still own a house with your exes (and deal with that drama).

I'm in no way affiliated with this company but here's a link that may come in use should you need any additional forms in the future @Morgan McRaehttps://www.firsttuesday.us/in...

After that, all rental losses are blocked and pushed into future years.

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

And it all thus incentivizes the correct future actions of others. 

This type of project is a future goal of mine.

Purchase preforming notes capped at half your total deployable capital (150K)Then sale the future revenue of those notes through note exchanges, doing this will allow you to hedge the US real estate volatility while turning a profit from the market