.), you're often limited to $25,000 of passive losses per year—and that phases out completely if your modified adjusted gross income (MAGI) exceeds $150,000.Real Estate Professional Status (REPS) or the STR Loophole: To use rental losses to offset W-2 or other active income, you must either:Qualify as a Real Estate Professional (750+ hours, primarily in real estate) and materially participate in the property.Or, if it's a short-term rental (average stay under 7 days), materially participate (100+ hours and more than anyone else) to convert it from passive to non-passive—even without REPS.Standard deduction vs. itemizing: You mentioned your CPA said deductions didn’t help due to the standard deduction.

Tuscaloosa is a great example—you can find affordable properties, but if zoning doesn’t allow STRs, your exit options are limited.

I would rather not burn up my limited document production count to put together an Addendum Doc. 

Some Zoning Rules have minimum square foot required, or have limit of one unit per lot. 

The main drawback is limited track record—the sponsors started in 2019 and have less than 10 years of direct real estate experience, with backgrounds in non-RE fields prior.Based on this, my current criteria for sponsors I’d consider investing with are:Focus on 1–2 regionsFocus on one asset classHave 10+ years of direct real estate investing experiencePrimarily dedicated to running investments (vs. running podcasts/courses/events)Appropriate amount of capital raised / projects going on in a given year.My question to the community:Are these the right criteria to evaluate sponsors, or am I missing key factors?

Bidding must be limited to $100.00 increments or multiples there of.2.

Not wanting to be responsible for them has two possible outcomes you should be mindful of:(1)  In locations where in-unit W/D's are an expected amenity you limit your prospective tenant pool leaving you with the least desirable candidates. (2) You conscientiously seek out properties in locations where the W/D are not expected.  

Seems like most are within the city limits where the population is more dense.

What this means for you in AustinIf you’re running MTRs (say, 3–6 month stays for travel nurses or corporate housing), you absolutely can take bonus depreciation after a cost seg.The main limit is that the losses usually stay “passive.”

Each comes with tradeoffs.For example, an S-Corp may reduce self-employment tax, but you could lose out on certain deductions like the QBI deduction if you hit the phaseout limit .