The loss created by section 179 is limited to your total net taxable income amount from all "active" business income you have, plus any W-2 income. 

Im new to the investing world and am still in the early stages, I've been studying and researching for the past five years.

Study the market.

.- Many of these HCOL areas also have strict limitations on AirBnB or short-term rentals... that do not apply to owner-occupants - thus allowing for extreme cashflow potential for house-hackers.

Maybe its just a blip, but I'm hopeful that we'll see population increase in the city limits sometime in the next few years.https://www.cleveland.com/news/2024/05/clevelands-population...  

It’s great that you’re looking to connect with local investors—it’s always helpful to learn from others’ experiences as you get started.As someone new to investing, one thing to consider is not limiting yourself to your immediate area.

We are not large scale but we do own properties in multiple states and are aware of the limitation of a subjective line like "should have rented in a hot market".

Do a case study.

Study the market.

With the limited info, I would say #1 is your smartest option but there are a lot of variables missing.