You can invest excess cash flow and get 5% return (online savings, CDs, treasuries) (or simply pay down principal). 

Also, thanks Steve, I'm glad some people agree with this required license being too excessive.

Second, I know the tenant doesn't have excess funds as they are still dealing with the effects of hospitals, drs, etc.

So, unfortunately, you're likely to pay close to 20-25% on the $400,000 (based on my loose math here -- please check this with an accountant who is familiar with Idaho).

I've been loosely following how they just took all the dams out on the Klamath which is crazy.

I had farm use so could have put my cows and chickens in there and they would be responsible if the farm animals got loose.

Quote from @Kent Smith: I have read several threads on thisYour rent income will be erased down to zero by your deductions, so you do not owe more taxes.Also, you do not owe less, because you cannot go below zero.Good news: the excess loss is not wasted.

Back in our species earlier days, they were necessary for instant energy, but they are not needed as much in our modern world....yet we consume them in excess (well, most people do anyway)That old saying comes to mind - 'moderation in all things'.....and it applies particularly well to exercise and diet...

If your losses exceed your gains, you have a net capital loss for the year.Offsetting Other Income: If your net capital losses exceed your capital gains, you can use the excess losses to offset other types of income, such as ordinary income from wages, self-employment income, or interest income.

I couldn't build you something for $105/sqft but $200 plus site prep is excessive.