No, I understand and appreciate how and why property taxes are levied.

Expense Deductions: Deduct direct expenses like materials, labor, and selling costs.4.

The interest paid on a HELOC may be deductible if you used the funds to "buy, build, or substantially improve" the first home. 

With a sellout of $1.3million, deducting the closing costs and hard money lending interests these people typically have. the builder will be left with about $80K profit.

You don’t get any extra interest deductions, and you’ll likely just refi down the line to access the equity.

Quote from @Chi Zhang: I've spoken to my CPA about this and he said it is extremely hard to meet the qualifications, and most investors have enough deductions that this deduction isn't worth trying to achieve.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Also, I am involved in rehab and management, so I am claiming my STR income under the Schedule C.Why aren't you guys claiming it under Schedule C and getting the deduction?

No option but to sell to stop hemorrhaging...After selling can I deduct losses (including passive losses) against other capital gains or ordinary income by 3K?

So if they have a $100,000 loss and there is 40% depreciation, the claim check will only be made out for $60,000 (less the deductible).