PAL - passive activity losses limitationsHere's the compromise our tax system created.

This setup may work for investors who want to remain somewhat involved, but it can fall short for out-of-state owners looking for passive income​From your description, it seems you have a system in place for these foundational services.

Is it active or passive?

I'm Suhael from Downers Grove, Illinois, passionate about real estate investing for passive rental income.

I'm looking to offset rental income.I can't take a passive loss against my W2 income.

After operating the STR for the first year can we turn the STR into our primary residence for 2 years then sell and avoid capital gains tax and depreciation recapture instead of doing a 1031 exchange?

Gain two years of experience managing a rental.

We estimate that the property is nownworth $950,000 to $1,050,000 (based on comps) - we gained approx $500,000 in equity by converting this into a commercial property!

While I’m just starting out and don’t have a portfolio yet, I’m committed to making my first investment in 2025.I joined BiggerPockets to gain the education, insights, and support needed to confidently make that leap.

After looking more into bankers code, private  lending and doing a lot of research, I came to realize that it is a job and not passive in any way.Don't get me wrong, I would love to do private lending but regulations makes it very difficult and time consuming.