Suspended losses are taken as ordinary losses when you sell the property.

@Cole Britting You can house hack any of those places...

@Michael McCarthy Unfortunately, a camera is not used in the ordinary course of your business as an investor, as such, it is not a deductible expense.

You are a business owner with obligations beyond an ordinary homeowner.

About your situation, it's a bit unusual but not completely out of the ordinary.

., a deduction taken earlier at the maximum ordinary rate in a state with no income state is more valuable than a suspended long-term capital loss (oversimplified but not a terrible example).

Arktavious, it's ordinary income either way.

Then as I converted equity in to cash by selling some properties and having an above average w-2 income, I can offset my ordinary income with 401k contributions that will reduce my AGI.

It will be an ordinary income taxed at higher rate. 

@Brit Hale and I built a great relationship in 2+ years of him sharing deals, trying to make something work, us bouncing ideas, and generating a solid working relationship.