Hi John - Under the passive activity loss (PAL) rules, you can deduct rental losses against passive income. 

Would be taking too much of a loss for it to make sense.

Some of the profits and losses I’ve been seeing in certain properties have been significantly lower than Airdna projects, with only a handful being in the projection range, and maybe one or two exceeding. 

🔟 Casualty Loss Deduction: Disaster losses might be deductible.📝 Pro Tip: Keep receipts & records to back up your claims.

Prevent financial loss.

Put the profit towards a new Primary residence and ~$50k towards a rental property.2) Rent it out and eat the cash flow loss, hoping rents increase.

My partner however is NOT a real estate professional and won’t be able to capitalize on the deductions as much as I will be able to due to their share of the “loss” being a passive loss.

Can you sustain the loss for a few years and repairs/turnover costs that can come up?

It didn't cross my mind when I sold the above property at a loss I mentioned above.

Short sales are where the bank would realize a lesser loss settling than they would completing a foreclosure.