In this scenario, you're subject to ordinary income tax.

You lost compared to a leverage REI investment.Let alone the Capital Gain versus Ordinary income on short term cash or debt investments  Risk is higher on financial investments than REI whether the interest rate increases or decreases.

Not sure if the patio should have a glass cage to double as a mud room or open for barbeque.

A lot of states don't recognize rental income as net ordinary income, which is needed for the PTET deduction.

And just like with the others above there are some good deductions you should be taking advantage of here as well.S-CorpW2 income – that’s easy, you probably understood that your W2 income can be added BACKK-1 income (box 1 & 2) – also pretty self-explanatory, but just in case, it’s added BACKAmortization/Casualty Loss – Added BACKDepreciation 1120s (line 14 & 15) – Added BackHowever….Mortgage Notes, bonds payable in less than 1 year (Schedule L, line 17)- this is SUBTRACTED from your incomeMeals & Entertainment (Schedule M1, Line 3b) – SUBTRACTED from your incomeNon re-occurring Other Income (1120s line 5) – SUBTRACTED from your incomePartnershipsW2, K1 (box 1,2, & 4), Depreciation, Amortization/Casualty Loss – all added BACKNon re-occurring Other Income, Meals and Entertainment, Mortgage Notes payable in less than 1 year, AND Ordinary income from Other (1065 line 4) – all SUBTRACTED from your income*WHEW* What a lot of information and we could probably spend ENDLESS amounts of time on this subject.

Going back to ordinary and necessary - if you own just one or two properties and spend thousands on your clothing with your logo on it - may be a bit of a stretch!

Bought a heat gun from Harbor freight ($10) and wife spent evenings removing multiple layers of stick-on linoleum while I use a hammer to break up a brick wall to make space for a new patio.

If you are putting up cameras to monitor your tenants, such as putting a camera over the patio, that would probably be an invasion of privacy. 

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

When she moved out of state she left all her newer appliances, patio furniture & being OCD the place was immaculate.