Here is what I am thinking.We are planning to get one STR every year, manage it ourselves to have material participation in it, Do a cost segregation and accelerated depreciation in year 1 to have active paper loss and offset our W2 income with that loss.

There's no magic bullet where you don't have to participate. 

This is especially important if you are investing actively and don't want to be tied to a job to make sure you can cover bad months on a real estate investment.You may even consider something like participating passively in a multifamily syndication. 

Learning anything as complex as real estate takes an enormous amount of time and effort and active participation.

Historically, these interest rates are pretty average, people just got spoiled off the super low rates lol.I say take 90 days to educate yourself, ask questions, listen to podcasts, read books, participate in the forums, and then ACT.

@Keith TorresHere is what the following IRS page states:https://www.irs.gov/retirement-plans/plan-participant-employee/401k-resource-guide-plan-participants-general-distribution-rulesA distribution is deemed to be on account of an immediate and heavy financial need of the employee if the distribution is for:Costs directly related to the purchase of a principal residence for the employee (excluding mortgage payments).

Keep in mind, my company could fund the entire deal and pay a contractor to do all the work without any financial help, but I am hoping to give this family member a chance to participate in this deal (that could result in more deals).

You should note if you go this route you will have to deal with your down payment, your closing costs and your first 10% of repairs out of your pocket before they will start reimbursing you.If this doesn't work then you may have to continue to wholesale deals or find a participation deal with someone with private money where they are providing the funds and become your partner in the transaction.Best of Luck to you.

@Brendan Longe & @Carl Schmitt for your greetings and participating in the conversation.Since I posted the welcome, a few weeks ago, my wife & I have looked at all sorts of properties in NA.

If your modified adjusted gross income is less than $100k and you meet the material participation requirements you can bring up to $25k of losses over.