The loss, if any, is not inherently passive vs inherently passive rental income loss and will offset your other income if you materially participate in the activity.

If you have a heart to help these recovering addicts then it'll be a rewarding and lucrative endeavor. 

Here’s what you should know on Schedule E:Depreciation (Line 18) – can be added BACKCasualty Loss/Amortization/One-Time Expenses/HOA Dues (line 19) – can be added BACKInsurance (line 9) – Added BackMortgage Interest (Line 12) – Added BackTaxes (Line 16) – Added BackAnd this is why owning property is such a great method of building wealth.

Are they experienced in the loss mitigation requirements?

I could sell the property on the market but I think after fees and taxes, I would be at a loss.

When vetting a syndicator, you should ask them how they handle pass through losses, and some may provide historic averages for their prior investments.  

The “loophole” allows a non real estate pro to obtain nonpassive losses, done correctly.

So a $254 loss.

You are unlikely to recover the money2.

The worst loss I've taken in real estate/NPL investing.