We used to just say we no longer participate in Section 8 program but new laws eliminate that option.

@Michael Plaks is spot on - character wise, 1099-R income falls in the same "bucket" as a W-2 wage would be, thus to offset this income with real estate losses, it follows the exact same pathway (ST rental with material participation or REP status with traditional rentals), but since you don't have all your time sucked up with a W-2 job, you have much greater flexibility to hit those related hours thresholds under those paths as well.No idea if he's taking clients - but if you are looking for local(ish) and qualified in TX, Michael is also likely a great one to reach out to.

I hold two properties in an LLC, one property is currently a STR with less than 7 night rental on average and I provide hotel-like hospitality services and materially participate.

No sub 2, no big leveraging, no “participations”  — if your aged grandmother doesn’t like it, or understand it, don’t do it.Mentors and gurus are not worth the money.

Not all participate.

Tell everyone you meet what you do and how they can participate.

Hi,I would like to connect with other "students" of Flipsystem. We have paid a lot and need to make the most of each others learnings. Unfortunately, the only way i can think of to do it freely is on Bigger Pockets. P...

The following year would be considered passive, so even if you materially participated, it would still be passive the following year and you cannot offset your W2.Is this accurate? 

We have a few preliminary meetings with some investment groups that that like to participate as  LP's.

How is it your agent's fault that you didn't participate as fully as you wanted to in hindsight?