The losses could be used against other sources of passive income and that is it.If it is a standard self storage model, and thus treated as rental income, then in order to get anything other than passive treatment you would needs REPS status. 

But it's also possible one little sliver can go cancerous.

Tampa has MacDill airforce base, several universities, and Moffitt Cancer Center.Not sure as sure about what big businesses Orlando offers to be fair on this one.

Of course this would mean newer investors would get preferential treatment which would make current LPs unhappy

Seems like cancer patients and transplant patients want MTR...may not want to stay in hotels...may want someplace pet and family friendly and want a host with a heart that can shorten their stay---Say YEAH....or extend it, without paying big penalties.....and these are people often networking with other patients and families who may be your clients too. 

My investors are normally other real estate investors who want a better deal, with better treatment, cause no one should be reduced to being a faceless number unless they want to be.

It overrides the 1231 treatment you are arriving at. 

  $6k deductible and no treatment (substance abuse) or pregnancy is covered for less than $500/mo.

So be homeless or lie about being disabled and needing treatment thats the situation we face. 

These are people who fighting cancer, had a death in the family, or otherwise are in a bad situation.