I have seen on this website answers both ways regarding this (the site administrator saying leave it in Sch A, and his colleague (also a enrolled agent) advising that it can be written off in Sch E, but that there are certain restrictions mainly -- you must have passive activity gains where the deductions are covered (no passive activity loss carry over allowed.

I am thinking of using that for a 20% down to generate some positive cash flow. 

I would advise that you find a company that doesn’t use high pressure sales tactics and that allows for an appraisal contingency.

Thanks for the advise, @Shiloh Lundahl I think they are focusing on a full time investment business, which I am not opposed to, but I was thinking more of a 5 - 10 year plan.

I could probably setup and optimize lead generation funnels for acquiring various RE leads (eg. foreclosure leads) worldwide.

Most of the value add B and C class apartment deals I see generate a 25+% total deal IRR...and that is split between the sponsor and the investors. 

@Kay Dyer Welcome to the exciting world of off-market lead generation!

I'm not sure if you're in a similar situation but I definitely advise you to keep your options open!

Generating passive income for sure.  

If you are referring to the Personal Property Filing that Maryland requires for LLCs then my understanding is that the property is NOT part of this (its classified as Real Property, not Personal Property).Standard Caveat: I'm not an accountant and am not giving advise, just my 2 cents.