The amount you listed at $4300 should be deductible, whether you're filing jointly or separately as you're under the limit for both for 2021 tax guidelines- $10K filing jointly and $5K filing separately. 

That being said, you might want to consider living in it for 2 years to qualify for hte sec121 exclusion, as limited as that timeframe might be.That all being said, its really tough to give you answer. 

I also have a limit to avoid them staying at a $150 hotel when a $65 hotel will suffice.

That was a limiting belief.

There are 4 parts to every real estate syndication (group investment).1️⃣ The Deal2️⃣ Financing3️⃣ Capital 4️⃣ ManagementThe LPs (limited partners) are passive investors and want to put their money to work by investing in safe, cash flowing assets like apartments, but may not have the time, expertise, or desire to go buy an apartment community by themselves.

I can have parents visiting me and living on 2FL) or leave it empty, would I be able to exclude all the profit from capital gains tax if it's within the limit (250,000)? 

Currently limited market & properties, but interesting concept as they expand.

However, this is highly audited area and you will see some blocks:1) you need to find a right asset first that you  enough depreciation with cost seg. 2) you need to materially participate in that activity.3) your losses might even be limited based other IRS code section. 4) You need to have an audit proof and documentation of real estate professional status.If we are talking about a huge tax bill, I’m pretty sure you would benefit from hiring a good CPA who can cut your tax bill.

Youll find some in Takoma Park (rent control in the city limits so be aware of that) then in DC proper.

AdamIf your losses are not otherwise limited, you don't have to carry over the losses.