So how are banks, lenders, and investors navigating the turbulent waters to mitigate risks and seize opportunities.Banks' Resilience and Caution: Despite reports of office towers selling at steep discounts, major banks have managed to dodge significant losses in the face of mounting defaults.

It's 2 properties, single family homes, in the SF Bay Area.Sharing some details that might help inform the decision, let me know if anything else would be relevant.One property fully paid off, generates between $20-30k in profit after expenses (property taxes, hoa, insurance, etc).The other property is our current primary residency and would operate at a loss of about $10k/year.I plan to travel back to the US at least once a year, could that be a deductible expense with an LLC? 

However, even with experienced investors, its very very very very very easy for that 30k profit to tun into a break even or loss.

Here are the key points:Reasons to participate in the capital call:It may allow the property time to stabilize and potentially sell within 24 months at a better price, avoiding a significant loss of LP-invested equity if forced to sell now in an inopportune market1.The additional capital can cover costs like rate caps and allow renovations to resume, which could help increase revenue and better position the property1.The operating agreement likely outlines the terms of the capital call that LPs agreed to2.Reasons to be cautious about participating:Capital calls can indicate the investment is not as sound as originally thought and is potentially at risk2.There is uncertainty around whether the additional capital will be enough to turn things around, especially if interest rates remain high and the market stays challenging for longer than expected4.LPs need to carefully consider if they would invest in the deal now based on the current facts, rather than just trying to avoid a loss on their initial investment4.Other important points:LPs should review the operating agreement, seek professional advice from their attorney, and ask the general partners detailed questions about the capital call2.If an LP is unable to contribute to a mandatory capital call, they may be considered in default and only entitled to the return of their remaining capital account balance, with no further distributions5.In summary, whether an LP should participate in a capital call depends on their individual assessment of the risks versus potential upside after carefully reviewing the deal specifics and getting advice from professionals.

I see the IRS regs about rental activities being defined as passive, but I don't see anything about a lower rate.I just see that this "passive activity" distinction subjects us to "passive activity loss rules", which limit our ability to offset other types of income with net passive losses.But even that limitation is negated for us because we fall into the "active participation" exception, so we can offset our regular earned taxable income dollar-for-dollar with losses from our rental (if I understand the regs correctly).

It could be argued that the higher the cap rate is the less likely the property will be profitable so a lower interest rate only means your loss will be less.

Wouldn't recommend that, loss runs will just run your rates up and you will be paying more and instantly show red flags to your new carrier 

Non-residential properties have a few extra options compared to residential properties.However, before looking at the accelerated depreciation (100% bonus is a form of it), you need to figure out if you will be able to take these losses.

Honestly we would be ok taking a small loss and coming out of pocket for the difference and just consider it like a monthly retirement account contribution.

They're passive losses but I'm tracking my hours to see if I qualify for Real Estate Professional Status.