Depending on the situation, it could still be worth it for SFHs especially if you have capital gains or other income you need to offset this year.  

I'm looking to learn more about passive real estate investing, syndications, and other passive or semi-passive streams of income or equity building.

It’s a great way to lower your living expenses while gaining experience as a landlord.

A friend of mine invested in one last year—apartments upstairs, a small coffee shop downstairs - and the combination of income streams made it a steady performer.Scaling with a 1031 Exchange:While not applicable unless you sell a property, planning for a 1031 exchange could help you scale quickly while avoiding capital gains taxes.

Are there some other ways I can offset the rental income so we do not have a big tax bill from the gains?

Then you get to pay capital gains as well.

By being physically present, you can gain valuable insights into the property's operations, interact with residents, and assess the team's performance.

Quote from @Paul Azad: Beautiful property Blake, and great growing area, i drove through a few years ago, amazing scenerey and perrenial vacation spot, would you feel comfortable sharing the structure of the syndication for the investors, fees, projected IRR, or time weighted avg returns etc from a potential passive investor perspective?

Your development deal will look much like a flip in the eyes of the IRS since it is 6-9 months as well you'll have the short-term side of taxes, not the capital gains taxing on it.  

And the truth is, if the investment property was completely passive and you had zero connection with it, such as an arbitrary stock in a mutual fund, then I would agree not to get emotionally attached to any one investment.