Hi BiggerPockets community, I am considering purchasing a STR and being an active participant for the opportunity to deduct the STR losses (notably deprecation) against my W2 job.

We bought at the peak of the market in 22, and can’t stomach the loss in equity + paying an agent to sell.

This way, I take a loss every year, but build equity.

I have been reading the BRRRR strategy by David Greene and while reading about when you refinance to recover your original invested capital I was thinking about the down payment.

We have come close to filing eviction many times.We do have a clause in our rental agreement that helps protect us from short timers, if it is legal in your state:After additional deductions for cleaning and repairs necessary to restore the premises to its original condition (less allowance for reasonable wear and tear), along with deductions for any rent due (including rent loss during periods of restoration), late fee, caused inspection/eviction, utility, notice, legal and any breach of contract costs, the balance of the security fee shall be refunded pro rata as follows: 10% of the remaining balance for up to one month of occupancy; 20% for two months, 30% for 3 months, 40% for 4 months, 50% for 5 months, …and so forth until 100% for 10 months or more of occupancy; 

Some of these same GPs/Operators loss 30-40% of their net worth in less than two years depending on how aggressive they were in investing and how much cap rates expanded.But great GPs often have certain characteristics:1.

Take the last three years' Profit and Loss statements and average them together.

Maybe you have some capital loss carryforwards lying around.

Hello everyone, I am selling an apartment building in California using a 1031 exchange (to buy property in the Midwest) and am wondering if I can use my passive loss carryovers and disallowed losses for that property to offset any boot because I am planning to use the cash pullout as reserves or repair money for when the replacement property is vacant. 

What you are proposing is the classic money loss situation unfortunately.