Anyone can declare real estate losses against their active income if their income is under the AGI threshold but only someone whose PRIMARY profession is designated to be a real estate professional will be able to offset active income. 

Should I agree to this so I can make some additional income, or is this opening a can of worms that I don't want to open? 

All the benefits of living near CA but no state income tax.

I haven't seen this lately but be careful and read the terms - there are often terms in the mortgage that preclude using the second home as an income property or limit the number of days you can be paid rent on it.

These type of loans have the least requirements and are usually approved based on the investment property alone and not the income of the borrower.The highest interest rates will be from a hard money lender.

That is a very high income so I would definitely look to acquire some short term rentals to supercharge the cash flow.  

Furnished Finder Expected Rental Income: $750-$850/mo PER ROOMWhat I Learned: - Serious investors will write on a deal that fits their buy-box- Knowing your buy-box will create an easy decision making matrix for you to move quickly on deal that work- Have your "ducks in a row" so when you find a deal that works, you can perform - Be someone who performs in contract - barring glaring issues with properties - if you write on a deal AND close, you are more likely to be presented with future deals FIRST because you take action - Be someone who other people and other agents ENJOY working with.

Buy Box: - Within 15 minutes to a major hospital - Within 10 minutes to a Starbucks (LOL)- At least two bedrooms- Light Rehab Only (paint/floors/decor)- Furnished Finder Expected Rental Income needs to be 25% over PITI How did you find this deal and how did you negotiate it?

We cleaned up the issues and problems, and maximized the income which increased my NOI.

That's more than half a year of income, plus you are probably paying management fees.