We are still renting it out at a slight monthly loss due to timing of some less favorable mortgages on it. 

@Rachel Kennedy the only way to prevent a larger loss of your money is to finish it.

REP does not free up suspended passive losses.

They deposited the money and did not ask any questions or ask me to sign anything.Recently we received an email stating we were approved for a loan- much larger and closer to our loss but not as much as we had asked for.

For someone who did not bother to read my profile and inquiry form this is Red Flag number #2.....regardless they are just regurgitating all the same real estate information that is out there and re-packaging it to sell "Education" as they don't offer much value of anything else if you have any real estate experience at all you can do on your own  As they have scaled there might be some loss of the personal touch and the guys other than Shawn are pretty weak. 

The turnover costs will definitely make this unit a net loss on the year.We do have an HOA, but it will not be involved.

Can unused passive losses carried forward from prior tax years be used against active income in the current tax year, if the taxpayer has qualified per IRS rules to become a "Real Estate Professional" in the current tax year?

I had over $5k in loss from the break ins. 

Even if you pay back your 401k at a 5-6% interest rate you’d have to hope for higher returns than that just to make up for the loss of the compounding interest.

If the results show a loss, that will be added to your liabilities. 2) If the income shows on your schedule E of the tax return.