I don't believe there is a correct answer to your question because it depends on a lot of factors, one of which is where you are in life and what your goals are. 

However, it MUST BE DONE CORRECTLY.

I help run a community laundry night in my town and a common complaint is that there are never any available machines in the large complexes...so maybe if a machine is available they cram it full trying to get all their laundry done at once. 

@Robert Biggerstaff You are correct.

Anyone know if that's correct?

@Liz Ridgway your understanding is correct in that you must sell a material portion (or all) of the real estate activity in order to claim passive losses.

You are purchasing with the HML if I understand you correctly. 

Thanks for the reply.I finished my 1500 sqft basement (library, theatre, full bath, 2 bedrooms, kitchen, rec room plus new HVAC) for $25k.I know it will appraise for $130k, because I just sold my rental property 2 doors down with no renovations (less sq ft and smaller acreage).Correct - cash only offer due to condition.Maybe this is a fix and flip?

Is this correct or am i missing something?

The class-tracking feature allows you to associate a given transaction with its correct property.