You must work at least 750 hours per year in a qualified RE business.So most people who have high-earning W-2 jobs outside of real estate won't qualify.But the unique thing about RE pro status is that even if you don’t qualify but your spouse does, you can both file jointly and claim the losses from your RE investments to offset your other active income together.It's an incredibly powerful benefit if you do meet the criteria.

Be mindful of a gift tax implications if you sell a house for less than FMV.Also be mindful of transactions between related parties when selling at a loss.

Jay,You mentioned total loss on syndication deals. 

You can adjust the rental rate at the renewal or the next lease up and possibly make up the loss the following year!

This is advertised as a “protected” note as Aloha is supposedly fronting the first $100k in the line of loss.

So many options that we are at a loss.

No, it would be a total loss.

After 2 years I have had to replace very few items, whether that be from theft, loss, or over usage. 

Its great that you have saved some money and have a desire but investing involves a risk of loss.

I know it's a long shot, but I'm currently having lawyers review the signed subscription documents to see if there's any way to minimize the losses here.