@mmiksell
You might want to take into account one considerable downside to grouping (aggregation), which is reproduced below and set forth at the link below (scroll down to "Understanding the Regs. Sec. 1.469-9 Aggregation Election").
https://www.thetaxadviser.com/issues/2017/mar/navigating-real-estate-professional-rules.html
If a qualifying real estate professional makes the election to aggregate all rental activities for purposes of measuring material participation, the combined rental real estate activity is treated as a single activity for all purposes of Sec. 469, including the disposition rules of Sec. 469(g). Ordinarily, Sec. 469(g) allows a taxpayer to deduct any suspended passive losses attributable to an activity when substantially all of the activity is sold in a fully taxable transaction. When a qualifying real estate professional elects to aggregate all rental activities, however, because the combined rental activity is treated as one activity for purposes of Sec. 469(g), passive losses attributable to a disposed activity are not freed up until substantially all of the combined rental activity is sold.
