Food for thought.

You may show losses that can be carried forward and offset future capital gains.

While you can’t use real estate losses to offset your W-2 income, you can use losses from one rental property to offset the income from another.

@Tim Porsche just a little food for thought. 

For example, deductions on Schedule E might impact passive activity loss limitations or eligibility for certain credits.

What you have is a few guys that have way over 100 years combined experience with investors and investor deals and we know what it looks like when investors are at very high risk of taking a 100% loss..

Their losses appear limited to the moving expenses.

They ended up selling at a loss and learned a valuable lesson the hard way.If you wouldn't feel comfortable living in the area, then why invest there?

Let's hear your wins and losses with them and your plans for the future. 

The loss reported on your K1 is likely considered a passive loss unless you materially participate in the syndication.