Lenders want to see income, not negative cash flow, even if the loss is just on paper from depreciation.

Assuming you are both working and the rentals are long-term, rental losses up to $25,000 can offset W-2 income if your MAGI is under $150,000, with excess losses carried forward.This post does not create a CPA-Client relationship.

So as a whole your rental losses can offset your agent income. 

The properties on an overall basis have tax losses. 

So I would caution everyone to make sure the replacement cost for your improvements will realistically cover your actual replacement cost in the event of a total loss.

Here's my situation:2024:- W2 income: ~ $1M (married filing jointly in CA) LLC profit: $80K (from 2 real estate flips, in NC on spouse's name)Capital loss carryover: $380K (from stocks in 2023)In what cases can my LLC profit be treated as capital gains? 

STRs do not require you to be a REP in order to take losses against ordinary income.

This is a good tenant of 5+ years, and I don’t want to cause unnecessary friction (I’m just trying to set up automatic systems for myself).

Are you certain you would have to sell at a loss?

Don't disclose things that are unnecessary.