Expenses directly tied to a deal that was pursued but not completed (e.g., inspection fees) are considered part of your investment activities and can be deducted as a capital loss in the year they were incurred.

Just make sure the cost of your protection doesn't rob your profit. 

Our prospective numbers point to increasing profits as the deal ages with an eventual infinite ROI once the initial investment is paid off.

This is a net profit of ~~ $1300 monthly. 1300 monthly X 12 = $15,600 anuall cash flow15,600 cash flow/ $53,000 acquisition cost = 29.4% cash on cash return. 

I worked them, remodeled them and made very little money and eventually sold them for little to no profit.

You can make great profits flipping houses, but you can also lose a ton if you don't do it right.That said, I encourage you to be in touch with an investor friendly agent in Indy.

Am I being dumb by NOT waiting, because it’s unlikely - I assume - my next deal will be as profitable (I got very lucky on this one!)

If she pays, then your really out of luck and you have to sue her in court for breaking the lease and damages.In general, I don't take people to court once I have the property back as the attorney fees and the fact you RARELY collect on any judgements (15% of the time or less) eats any profit and wastes your time.

If the deposit does not cover the charges, then you should consider whether you want to pursue collecting the unpaid balance or write it off.You did the right thing, and the tenant's behavior proves you were right.

Fast forward three years: He’s moved out, and the property now nets him close to $1,200 a month in profit after expenses.