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?

I filed a claim with bank but bank mentioned they will try to recover the money if there is money in the amount. but its not guaranteed.

The yield also should tell me how many years it will take to recover the money I have invested.

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.

See the attached breakdown of losses for more details.