@James Tobin Welcome to Bigger Pockets! 

Two main reasons being: (1) debt does not increase your basis in an S Corp, which means your losses get limited.

I own a couple vacant lots and looking to purchase more in a small area. 2/1s in Memphis, as far as I know, are as desirable as in a bigger market.

However, as W2 earners, these losses are considered passive and can only offset passive income unless you or your spouse qualify as a Real Estate Professional (REPS) by meeting the 750-hour and material participation requirements or STR is used.

Hopefully that upfront diligence plus a healthy contingency budget would suffice to keep me out of that scenario, otherwise I would foresee a guaranteed loss, or underperformance at the very least.

.), how litigious is your state, your own loss history/ratio as an individual investor, the carrier's overall loss ratio in a certain state/area, the deductibles you've elected, etc. 

 I have been researching and browsing through bigger pockets and different real estate investment info but haven’t pulled the trigger on anything.

We now have an opportunity to move into my parents home which is bigger and “take it over”.

I then recoup any losses in the resale and down payment forfeiture.

I have a Bigger Pockets subscription and should have come here first!