It sounds like you’d definitely benefit from doing a study since your wife qualifies as a real estate professional.

I can't unlock those losses since I'm not a Real Estate Professional because I'm a W2 employee.

You can earn passive income if you take a hands-off approach, or non-passive income if you actively manage your rentals as a real estate professional.

If you already have contact info for current and former tenants, you could ask some survey questions like:How responsive is the property manager to maintenance requestsHow professional and respectful is the communicationAre the common areas and grounds well-maintainedIs it easy to reach someone when neededOverall, how satisfied are you with the property management If not, see if the PM company is willing to distribute it on your behalf, though keep in mind that this may affect the honesty of responses. 

In short: $558k gross, ~9% cap, modeled cash-flow of ~$92k/yr with professional management (or ~$140k if self-managed), and conservative 5-yr after-tax proceeds of ~$1.4M.I’m sharing the math, assumptions, depreciation treatment, and the risks/opportunities I saw (value-add ideas, occupancy sensitivity, and market comps).

In short: $558k gross, ~9% cap, modeled cash-flow of ~$92k/yr with professional management (or ~$140k if self-managed), and conservative 5-yr after-tax proceeds of ~$1.4M.I’m sharing the math, assumptions, depreciation treatment, and the risks/opportunities I saw (value-add ideas, occupancy sensitivity, and market comps).

.💰 Purchase Price: $173,000🔨 Renovation Cost: $50,000🏠 Sale Price: $390,000📆 Days on Market: 4💵 Profit (before closing costs): ≈ $167,000This project is a perfect example of how creative vision, strategic upgrades, and professional staging can turn an overlooked property into a massive win.We didn’t just flip a house — we created opportunity, equity, and a story of success.

be flexible on the exit Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I’ve been diving into the numbers, trends, and different business models, but I’d love to hear directly from others who have experience in this niche or in similar commercial ventures.From my research, salon suites seem like a strong model—steady demand, potential for semi-passive income once stabilized, and a great way to serve independent beauty professionals.

Readers should seek professional advice.Great information providing clarity.The one thing I’ll add is that having an LLC own the property enables the investor to choose the LLC to be taxed as either a corporation or S corp.