However, if you have other investments that can carry these losses and still have positive portfolio cashflow AND gaining significant equity, maybe keep it.... 

He also noted other miscellaneous items for us to do also, and it seems like he's making a wish list. 

Like you mentioned and what I've read is the deal structure and sponsor carries the biggest risk so thank you!  

You may show losses that can be carried forward and offset future capital gains.

I do my best to honor both, and God has blessed me more than I deserve; including having a portfolio of rental properties, which is a story in itself that came about because someone offered me a house on an owner-carry contract because he knew I could never afford to buy my own while living overseas.  

My most recent condo carries a rate of 7.99 fixed with about  90k equity the other carries a rate of 4.75 ARM with 80k equity The 3-plex has a rate of 3.45 fixed, over 250k in equity. 1.

Open to:--Seller carry wraparound (with my current 1st and 2nd loans in place). 

Sellers are carrying the note for 5 years at 5% interest.

Because I pay for the materials, I know the cost of each items now.

However, I did speak with the realtor, and she sent me information on key items like the water heater, which was last replaced in 2014.