If the LLC you own shows a loss (beyond depreciation), and you are an owner of that LLC, this would carry into your personal tax returns on Schedule E, page 2 from your K1.

Quote from @Dave E.: @David M.

Its a scare tactic and she is trying to bully you into letting her get away with this BS.You need to screen WAY better and/or hir e PM for future tenants. 

It fills out your Schedule E to send off to your CPA every year!

Quote from @Pierre E.: I am trying to learn and understand... someone told me that its not just size of the home or level of the flip that determines profit, and that in some markets, what is considered a typical profit is 300k based on the 70% ARV formula.

Currently, we own and operate around 1,900 lots in 12 states, and headquartered in Phoenix, AZ (1176 E Warner Road Gilbert AZ).

The real property investment can be repositioned if it proves disappointing in its original form; it can be refinanced or recapitalized if it has too much or too e pensive debt; inflation over time bales out many bad purchases, and finally the investors knowledge, experience and abilities can be leveraged to turn around a cash flow negative property.I’ll provide an exampleThree years ago we purchased a note from a bank secured by two auto repair facilities with a large amount of excess land.  

I have a lot of faith in Newberry, but the numbers are the numbers.https://www.sec.gov/Archives/e...

Future returns are never, N-E-V-E-R guaranteed.

Went through extra fast because the developer really had no other good optionsI doubt we'll know the full details for years to come but I'm curious if you have an opinion, or if there's other probable options C,D,E I could be missing as just a public bystander to the situation @Rene Hosman It's very rare that anything gets done quietly behind the scenes.