There is not a one answer fits all  Hey Kim,Great points—tertiary markets and C areas on the verge of gentrification are exactly where we’re seeing solid opportunities too. The

Is that annual amount based on the set/existing depreciation schedule from 2019 when it dropped off? 

Lenders typically look at your full tax return (Form 1040) with Schedule C (for self-employment income) or Schedule E (for rental income) to verify income.To qualify for a home loan, banks generally require:At least two years of reported self-employment income.Tax returns, bank statements, and possibly profit & loss statements.A solid debt-to-income (DTI) ratio to ensure you can handle mortgage payments.If you’re newly self-employed and don’t have two years of tax returns, you may need to look into bank statement loans, which some lenders offer based on income deposits instead of tax returns.

Rental income and expenses must be split between Schedule A (personal) and Schedule E (rental) for tax purposes.

They will likely request a copy of your most recent form 4562 and schedule E depreciation supplement and handle your individual depreciation schedule in the K-1 for the OP units.

But since you have already taken bonus depreciation while it was an LTR, this may not even be a concern for you.There're other potential complications such as a different depreciation schedule, treatment of previously suspended losses, and so on.

I see where you guys are discussing meetups and varying schedules.

If you are not Materially Participating, the loss will be reported on Form 8582 and like be classified as "Unallowed".The ordinary loss from Schedule E cannot offset the Schedule D capital gains. 

My rental property generates passive losses from depreciationIf I invest as LP in passive income generating properties then I presume I can cancel my passive losses on schedule E from rental with portfolio income (K1) from these rental properties.

If your Schedule E (rental income reporting) shows a mortgage and operating expenses that negatively affect your income, it will impact your DTI when qualifying for a full doc loan.2.