Thank god for capital losses to offset capital gains from much better performing assets.

For 2023's tax returns, you can simply remove the activity entirely from the tax return including the assets, or you can make them inactive / out of service for legacy purposes.You might have a passive loss carryover on Form 8582.

That's $8,000 in losses from one tenant your first year.

STR and LTR losses have unrelated requirements to be deductible against W2.

But, part of his point is that IF I do not qualify, it may be a long time before I can take advantage of those losses from the bonus depreciation anyways.

You may take a loss, but you'll hopefully learn some lessons and do better next time.

It is so important to buy property that you set yourself up for success with (they pencil out) and mitigate the risks of loss. 

However, given that the STR it is technically ‘attached’ to my Primary residence, could I still offset loss years against my W-2 income?

@Sky Shade, tax benefits are an incredibly unique situation to each investor.  

Regarding your questions:1) Typically, the landlord's insurance should cover the cost of the tenant's hotel stay during repairs, as it's considered a loss resulting from the property's condition.2) If the pipes were shared with other units, responsibility might fall on the HOA to address the issue.