I assume he is solo operator? 

In normal operations and stable markets, the bank margin is typically about 160-180 bps above the fed funds rate, however we are currently seeing them build close to 300 bps of margin which tells me they are still expecting volatility in the bond market. 

As painful as this lesson was, it made me make major operational changes.

You can 1031 into some syndication projects, but be wary as they usually require a lot of capital and you NEED to pick the syndicator/operator right. 

Some have very little involvement in the actual operations of the properties, so if you are seeking asset management help, I would be sure to ask what the mentor's level of expertise is in that area.Who would I actually be working with?  

They could be completely ignorant of how their PM operates or that the PM is losing them money hand-over-fist.Start by going to www.narpm.org to search their directory of managers.

@Camren Ritchey Depreciation is a non-operating expense.

Full transparency I am a seasoned property manager and will be opening my own brokerage soon - working as Director of Operations of another brokerage right now.

If rental losses generated by cost seg exceed income in tax year this is referred to as a Net Operating Loss and gets carried forward into future tax year.

I'm not a CPA but here is what I see as the pros / cons.PROSYou could potentially take more deductions as operating expenses.