A few other things that help to balance the risk I feel is that we are buying the home significantly undervalue due to the inflated interest rates (was listed at $500k in late July purchase price of $410,000) so there is a good chance the price goes up and we can sell at not a loss if we really need to pivot hard.

Can I afford that loss? 

As I understand it, if you have considerable hours managing your own property (I think it’s currently 750 hours per year) you can claim real estate professional and take losses against w2 income.  

Well if that’s the case from my understand and if I’m mistaken someone please correct me but the only tax break you get on that “loss” is interest not principal payments for the mortgage, so all the income that’s going towards your principal payment is still being taxed as your income.

This was a tremendous win for real estate investors, and it provides a unique opportunity for the passive investor to take advantage of tremendous passive losses the first year they invest in an investment through the syndication model.In the same example as above ($375,000 house with land worth $100,000), your depreciation expense could be closer to $100,000 in the first year compared to the $10,000 per year for $27.5 years.

In many ways i am with them for the wins and loss's without having to spend my own money.

Your CPA will have the best information as he/she will know your AGI, tax rate and whether or not you qualify to offset the real estate losses with other forms of income.With that said, something seems off with the calculation given.I normally assume 20% to 35% of a purchase price is eligible for bonus depreciation, in your case is around $40,000 to $70,000.the $5,000 tax savings figure would assume that you are in a very low tax bracket.However, this assumes that you are eligible to utilize the losses on your return.Also, you may be better off which a DIY Cost segregation study which would be significantly less.Best of luck.

This puts someone else in the first loss position, and can offer 8-10% annual yields, that are straight up income. 

That's $294,000 invested, plus six years of work and stress before they become profitable.I think it may be wiser to unload at a loss, wait for the market to bottom out, then try again with a property that produces positive income from the beginning.

As for the property management quote, I wouldn’t put a lot of weight in that unless you are going to use property management.