@Jagan ReddyI'm not a CPA or a cost segregation specialist, but I do know that if you are not designated as a  real estate professional, then you can only offset passive income by your passive losses.Qualifying as a real estate professional is more challenging than most people want you to think.

From the lenders point of view, they want to see that you have "skin in the game" that way if you do run into any complications, you'd be more motivated to address them as you are invested financially in the project yourself.Regarding the tenants, I'm a bit less experienced in that regard.

What is the best way to find a short sale specialist?

I've also since realized that I don't think my personality matches up well with the thick skin needed to be a landlord, and the deals I've found (yes, I know many can say I'm not finding good enough deals) don't have a ton of room for property management fees (or if they do, they're in areas that I would never want to have to go - and I would if something ever happened w property management). 

Trump.My skin crawls just thinking about it.

I've encouraged them to contact a 1031 specialist, but this question has me curious so I wanted to bring it to this forum for consultation as well.

Last thoughts on being a GC, if you have a track record, it's very encouraging for investors to partner with you as you have skin in the game and can show them previous projects you completed successfully.

It sure makes sense  - the builder has no skin in the game in controlling costs whatsoever.

If possible find a local partner that can potentially put some skin in the game. that local partner can then become your eyes and ears on the ground2.

My best advise is to make sure your team has an acquisition specialist that knows the areas and which ones produce the best cash flow.