Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

They do notes and turnkey rentals - are these tied together (meaning it’s one entity or the notes function the rentals?)

There are three safe harbors that businesses may use to meet the test.Half of the amount the business spent on services were for services performed in a QOZ.Necessary business functions and necessary tangible property was located in a QOZ.Half of the hours of service received by the business were performed in a QOZ.A business does not need to meet all three safe harbors to qualify.

Property management teams should have departments for each segment of their business that know exactly what there function is and have employees that focus solely on that part of the business to best serve their clients.

I don't have functions where people go to a low or no fee seminar making wild claims and trying to suck them out of 40,000 or more ( talking in generalities not a specific company ).

What functions did you hire, or sub out?

From your post it looks like you didn't have a property  inspection by an independent third party and are going by what they have told you it needs to be a functional rental.7.

always valuable to throw yourself in a guest's shoes and turn everything on and make sure it functions well or as intended. 

@Thomas Loyola My stuff is probably B- class if you take into consideration the actual criteria for classes.

I only stopped because I was getting hung up with the email CRM (it does not function as I expected since I have to send each of  200 generated leads an email manually instead of as an email blast).