I know it's a long shot, but I'm currently having lawyers review the signed subscription documents to see if there's any way to minimize the losses here. 

K-1 losses, generated through depreciation and cost segregation, can often offset distributions during the hold period, minimizing taxable income.

I also had a passive loss for the rental property in 2017.

Would you have net income or net loss without the cost seg study?

This approach will help preserve your operating capital.

Once a complete loss mitigation application is received, the servicer must review that application before starting the foreclosure process.""

Be careful about feeding additional capital into syndicates with short-term loan maturities if the only plan is to negotiate lender maturity extensions for another year. 

And I certainly wouldn't have survived it with no investor losses, as I was able to do thanks to having a manageable portfolio at that time.All that is to say that I wouldn't change a thing.

Ironically the invested capital is often very similar for either. because your either investing capital in # of locations to scale, or investing capital in higher quality ie higher cost assets and operational items. 

@David Woodside The 500-hour rule allows you to treat rental losses as active, enabling you to offset other income and reduce your tax bill significantly.