RE Pro Status supercharges this.If you or your spouse are an RE Pro, your LP investments can lead to depreciation offsetting both passive and active income.If you are not an RE Pro, the losses due to depreciation can only be used to offset passive income—such as income from other rental properties or other passive investments.

No loss on any investments. 

I've wanted to get into real estate for a long time but typically moving into that realm in a w2 position means a decent pay cut and probable loss of all the other good stuff.

The pests are likely caused by something the tenant is doing (not storing food properly, keeping the place clean, etc). 

One hurricane, one downturn, one localized series of job losses, and the house of cards falls. 

If you have any questions on this you might contact a few local realtors to ask about annual appreciation over the past few years.)If after considering all these things you still feel the property will be a loss you should look for a different property.

After around 2 years of payments we sold the loan and went from a loss to a very nice gain. 

You should be able to offset all the passive losses against the passive gain.

It doesn't make sense to hire an attorney for $1,500 when I can do it for $300 and make the tenant pay the costs (or eat the loss).It's also important to understand the PM process.

I love to travel and explore food places.