If depends on your level of participation with the partnership / LLC. 

I'm proud of you.Best...

"If you or your spouse actively participated in a passive rental real estate activity, the amount of the passive activity loss that’s disallowed is decreased and you therefore can deduct up to $25,000 of loss from the activity from your nonpassive income.

Make me proud.

.- Did you materially participate?

Right now most metrics show unaffordability not solving itself, but if you stay liquid and it does start to become affordable--you're able to remain a participant which is really how you should invest.

No commercial business owner wants to own the building when they can triple net lease and instead just pay for furnishings, taxes , insurance and maintenance.The ConC return on a triple net leased property is far higher than on a property owned by the management company.Passive investors can still take advantage of accelerated depreciation and cost segregation thru material participation of new construction of a STVR home. 

Now, for my learning if you please, does it make a difference that i "materially participate" in the business?

This encompasses eleven authorized activities within the real estate sector, including development, construction, leasing, and brokerage.750 Hours Test: In addition to meeting the 50% test, individuals seeking Real Estate Professional Status (REPS) must surpass 750 personal service hours materially engaged in one of the specified real property trades or businesses.Understanding Material Participation:Material Participation: Only hours deemed material to the operation of a real estate business are counted towards qualification.

Then go down to the "Exception for Rental Real Estate With Active Participation" and read some of the examples to see if any of those apply.