To qualify, you generally need to spend more than 750 hours per year on real property trades or businesses in which you materially participate.

You can qualify for this by:Having tenants for 7 days or less at a time.Materially participate, typically with the test: You participated in the activity for more than 100 hours during the tax year, and you participated at least as much as any other individual (including individuals who didn’t own any interest in the activity) for the year.If you materially participate, you can offset your non-passive income even if you have W-2 income.

@Jonathan GreeneI agree - I like to offer an alternative option which can be negative and I get plenty of private messages of me being mean, out for people etc.As an example, I am Sorry, but my opinion is if you get 100% financing I think it is ultra high risk especially for someone new to real estate.

For example, things like tools or building materials that I buy specifically for repairs on these units.

If yes, what are alternative methods to tap into its real estate equity after signing a multi-year lease with an operator? 

Paint correction and detailing take hours of labor, materials, and a dust free environment.

If you’re unhappy with your employer look for alternatives so that you can still get funding for investments.

The key is to have a detailed scope of work itemizing the materials and grade of materials to ensure that the contractor will complete the job for the original agreed amount. 

The only upgrade I made to the condo while there was a fresh paint job that was done by my generous brother-in-law FOR FREE (minus materials) and the epoxy I handled myself in the garage.

Tax benefits can help make a better business deal, but a bad business deal is hardly ever going to break even just because of tax benefits.The other big consideration you should have, in order to actually benefit from real estate fueled losses or credits, it will require a substantial investment of time - either to get over the material participation thresholds for short term rentals, or to get over the real estate professional thresholds for mid term /  traditional rentals.