I spent a great portion of my life in school and as such lost out on a lot of financial/investment opportunities since I was in school or in low paying jobs in order to gain experience.  

They haven't cried any of their properties yet, but they told me that they will in the near future.  

@Ulises Rodriguez your friends lender is requiring it to assess the financial and status of the HOA that the condo is in.

I'm an 18 year old beginner day trader, thought I'd give real estate a try as well on my journey to financial independence.

Buying investment property is a great way to build a portfolio that delivers wealth now and sets you up for a comfortable retirement in the future.

If so I don't think at this point with only 1 triplex (with me living in one of the units) I would have enough passive gains to need the full $25k of passive loss.And would I be able to save some of these passive losses for future years as it sounded like @Brandon Hall you alluded to?

If you  are seriously looking into buying this property and possibly using it as 2-unit now or in the future, I'd suggest spending $150-200 with a land development consultant who could explain to you the issues and challenges related to such rezoning process.All that said, City of Austin code enforcement is very complaint driven.

Obviously, there are a number of factors such as which financial institution you're dealing with, your details, and the property that change these loan factors around.

Therefore, future properties will be purchased under the LLC I just created.  

@John Anderson I know you don't need it for a background check but you do need it if you have to send them to collections in the future, right?