@Victor Yang To use the rental losses to offset any active income (W2), you'd have meet Real Estate Professional status (which would be difficult to do with a W2 job because you'd have to work more on real estate than any other job to qualify) OR have an AGI of $150K or less.

As a co-host for short term rentals, you may not need a license as long as you're not crossing over into activities that could be considered brokerage activities like handling any contracts, collecting rents, doing any accounting, approving tenants, etc.

For C to B-Larger developments announced nearby-Increased activity in new construction-Building of commercial retail in or near the neighborhood. 

Probably some predatory or fraudulent activity here that should be investigated.

Even with active investments, diversification is better.  

Up until November, actively licensed VRD (Vacation Rental Dwellings) could transfer one time to the new owner.

Right now, I’m actively learning and planning to start my first projects this year.

When you are ready to sell again, you just get the next broker to pick you up and activate your license again. 

but careful planning and documentation are essential""...making sure that your wife understands what she needs to do to document her hours and activities."

There are likely active real estate investing groups for Tacoma and the surrounding area.