The idea is simple: purchase a property, live in one part, and rent out the rest to offset your mortgage or even generate profit.

They remain distinct on Form 1040 with different tax treatmentOnly capital losses can offset capital gains (except for the $3,000 allowance)So even though material participation makes the loss non-passive, it's still an ordinary loss that cannot offset capital gains from stock sales on the return.The only way capital losses can become ordinary is upon the sale of your property, and that loss could offset your W2 salary.  

Even a clock is right twice a day. 

Even if someone in these forums were to teach you a creative financing strategy that required zero out of pocket cash and the seller was willing to accept those deal terms, you still aren’t qualified to own real estate with your current balance sheet.

The reality is that you will not find that in the seller finance space, and even if you do, there will be virtually no discount. 

There are not a ton of comps on Zillow or other websites that I have checked and it was last sold a while ago so even these resources are unable to give me a quote.  

Even if you rent the house for $2,000 a month, you will still lose because of maintenance, vacancies, and the expensive mistakes common with newer investors.You can borrow up to 70% of the equity.

I feel like a Daisy-Chain would muck up my Timeline or even the whole Deal.As long as everything is in writing and I get my Fee, does it matter?

If finding a new replacement is more difficult then get your new property under contract first even before your old property closes.  

Unfortunately, it's near impossible to find anything over 10% cap rate and 10-20% CoC return... even in the midwest, you won't find anything like that.