...but between deprecation and ordinary expenses I'll be at a massive loss each year. 

Quote from @Julius Vincent: Hey @Matt Williams - Just an FYI that IRA withdrawals are taxed as ordinary income, not capital gains.

I have no recommendation but do you qualify to use the additional depreciation against ordinary income?

The lien itself is not a direct ownership interest until foreclosed and deeded.Why it matters: If you sell the property shortly after receiving the deed, your profit is considered short-term capital gain (taxed as ordinary income).

The Manager shall have no authority to do any act prohibited by law or in contravention of this Agreement, nor shall the Manager have any authority to do any of the following without the prior written consent of the Members holding at least a majority of the Units:(a) Permit or cause the Limited Liability Company to make any loan to any Manager or any of their Affiliates;(b) Permit or cause the funds of the Limited Liability Company to be commingled with the funds of any other person;(c) Permit any creditor who makes a no recourse loan to the Limited Liability Company to acquire, at any time as a result of making such loan, any direct or indirect interest in the profits, capital or property of the Limited Liability Company other than as a secured creditor;(d) Perform any act which would impair or make impossible the ordinary conduct of the Limited Liability Company's business;(e) Sell all or substantially all of the assets of the Limited Liability Company other than in the ordinary course of business or merge the Limited Liability Company with any other entity.6.04 - Obligations of the Manager.

You will, however, still pay ordinary income.If your next job qualifies you as real estate professional status (REPS), the depreciation benefits are amazing.

I can say, it can be challenging and at times you have to put up with more than you would with an ordinary rental, but I have managed to make all this work overall.

Our family had a summer home that had an open metal roof over part of the patio, and when it rained everyone was uncomfortable with the noise level.

@Pavan K.In general, real estate losses via operational loss or depreciation deduction can not be used to offset ordinary income (W2) if one’s adjusted gross income is over $150,000. 

The following year we made upgrades, by changing the kitchen island, and adding a backyard patio and bar.