If your income exceeds $150,000, your ability to deduct passive losses from rental properties is limited, and any disallowed losses carry forward to future years under the passive activity loss rules.Yes, the deductions can accumulate and roll over year after year.

Are you actively trying to seek properties in that area?

Where are all the comments from people who are active in the BP community? 

However, I'm excited to be a more ACTIVE member moving forward! 

Rarely do I come across a LLC that is treated correctly (without comingling of funds, documenting the minutes of the required board meetings, and often paying the franchise taxes to keep the LLC active). 

Hey @Austin Wolff - You bring up some good points about knowing the house better than anyone when you build new if you are actively involved and onsite regularly, but I'd get behind @Jay Hinrichs, in the sense that the numbers don't always allow you to build new.Here in Chicago, new developments are super pricey, and even the BEST DEVELOPERS HAVE SLIM MARGINS. 

However, managing a rental property or being a landlord is not a passive activity.

If you do decide to proceed into investing, this will open to a realm of achieving financial freedom and slowly accumulate your rental portfolio, so that you can replace your active tech income from your rental income.

.- Privvy is easier for seeing investor activity in the area and seeing the before/after of flips (how much they bought and sold it for)As an investor, I presume that your versions don't give you access to MLS sale price data? 

If I rent out three bedrooms at 600 each, that is double what I would be getting.However, it seems that renting out rooms separately isn't permitted unless you actively live there with the property as a primary residence (not sure on this point).