There are some key limitations that are important:Passive losses can only offset passive income.Up to $25,000 in passive rental losses may be deducted against non-passive income if the investor actively participates and their modified adjusted gross income is below $100,000.Unused passive losses are carried forward to future tax years.Here’s an IRS article that further discusses the rules: https://www.irs.gov/publications/p9251031 ExchangesThis strategy allows investors to defer capital gains tax when they sell a property if they invest the sale proceeds into a “like-kind” property.

I'm a realtor currently trying to gain contacts and two key ones I'm lacking right now are an inspector and a handyman.

A couple of months ago, a screen popped up forcing me to pay a fee in order to gain access to my account.

But as you get better and gain experience, you typically see a 30% to 40% cancellation rate.

I roughly calculated 50% of my gains came from appreciation and 50% from cash flow and mortgage payoff.  

However, don't prioritize return of capital over return ON capital.Focusing on strong rental areas, high quality tenants, solid property upkeep and long term gains will keep you alive in this business longer. 

If you are lucky, it will cover all your costs related to the property (bank rate etc.).In Germany, real estate is a long term investment where usually the biggest gains (depending on region) come from appreciation.

I look forward to learning and gaining knowledge. 

You now have $5k in unreimbursed expenses, and 2 houses; one with a $200k mortgage worth $250k (giving you $50k in equity), and; one with a paid off HELOC, value and mortgage unknown, but presumably with more than $165k in equity.You should also treat the $5k unreimbursed renovation cost as a debt and pay it back (even to yourself) accordingly.There is no tax due because not only did you not make any realized gain, but there was no sale. 

For instance, if you tell me the entire $100K is going to be needed in 2 years to be the down payment on your primary residence", I'm going to advise a different investment type than if you tell me "the money only needs to return me an annualized 8% gain, I don't need the money for at least a decade, and I want zero management or oversight."