However, only those classified as "real estate professionals" (REPs) benefit fully from these deductions, which are usually limited to those who spend more than 750 hours per year or half of their work time in real estate.

Hey Jeff, I was just in a similar position with my wife (looking to house hack), but knew she wouldnt be down to share our space.

Quote from @Justin King: Congrats on your first flip!

Because first and foremost it requires you getting INVOLVED, putting in some rep's, and if you won't get involved and won't put in the rep's you will never, I repeat you will NEVER succeed in investment real estate or any business venture EVER, full-stop. 

You also qualify as REPS, so your flipping income could be tax-free if you really strategize well.

Quote from @Justin Brickman: San Antonio for midterm and short term rentals.

Best practice is to do this type of modeling after you've seen the property and gotten the reps to know what all the numbers mean.

Note that if you are married filing joint, only the spouse who is qualifying for REPS is able to count their hours.Step 4: Apply the quantitative testsPer Section 469(c)(7)(B), in order to qualify for REPS, you must meet both of the tests below:750-Hour Test: If you materially participate in a real property trade or business, you must spend 750+ hours during the tax year.More Than Half Test: You must spend more than half of your personal service hours in the real property trade or business in which you materially participate.Step 5: Material participation in rental activities Just because you qualify for real estate professional status does not mean that your rental activities are automatically considered non-passive.

If you are claiming Real Estate Professioanl Status(REPS), it is important to keep a log of your activities. 

Once you have REPS the distinction between passive income (or losses) and active income (W2) disappears and all those tax losses you have been banking can be applied to the W2.Good luck