There are some key limitations that are important:Passive losses can only offset passive income.Up to $25,000 in passive rental losses may be deducted against non-passive income if the investor actively participates and their modified adjusted gross income is below $100,000.Unused passive losses are carried forward to future tax years.Here’s an IRS article that further discusses the rules: https://www.irs.gov/publications/p9251031 ExchangesThis strategy allows investors to defer capital gains tax when they sell a property if they invest the sale proceeds into a “like-kind” property.

I roughly calculated 50% of my gains came from appreciation and 50% from cash flow and mortgage payoff.  

A couple of months ago, a screen popped up forcing me to pay a fee in order to gain access to my account.

But as you get better and gain experience, you typically see a 30% to 40% cancellation rate.

The peace of mind and seamless transactions are far more valuable than squeezing out a few extra dollars from a deal that could fall apart at any moment.Real estate isn’t just about the highest bid; it’s about the relationships and reliability that ensure deals are closed efficiently and without unnecessary stress.

I'm a realtor currently trying to gain contacts and two key ones I'm lacking right now are an inspector and a handyman.

Labor costs are 20-30% higher than my core market in Denver, which was very surprising to me, which makes finding a PM that has in house maintenance, electrical, plumbing, HVAC very valuable. 

However, don't prioritize return of capital over return ON capital.Focusing on strong rental areas, high quality tenants, solid property upkeep and long term gains will keep you alive in this business longer. 

On the other hand, a 24-year history with an 18% net IRR that includes some losses may indicate a more seasoned sponsor who has navigated multiple market cycles and learned valuable lessons along the way.Regarding internally managed operations, like property management (PM) and construction management, scale plays a crucial role.

Thanks David for your responses and sharing your valuable experiences.