To be worth the effort, it should produce return significantly greater than passive options.  

And if you're investing in a syndication that typically produces K-1's late in the tax season (such as a GP fund) this can make things very tight and/or cause extra tax bills from having to do estimates extra tax work with your CPA.  

Our market is unlikely to produce outstanding cash flow with the use of a PM and if you are self managing, your cash flow equates to earnings for your efforts.I am hopeful that the high interest rates have had a negative impact on income and that the STR income will improve if rates decrease.  

You don't part with any money when you produce POF.

I just created an income producing asset creating $600/month in positive cash flow with none of my own cash invested.  

Fortunately the appreciation has produced outstanding overall returns.  

Getting financed when ready is no issue.The Market choice, and then the building of the infrastructure that will produce solid opportunity is very, very hard. 

To your second part of the question: Most multifamily will be tenant occupied, which means they are producing income.

As you have experienced this is the nature of these transactions.

Answer: No, buying an STR doesn't change the nature of historical passive losses on other LTRs you own and carried forward from prior tax years