For self-managing landlords, what are some of your favorite practices and policies to mitgate your fears and and potential losses around pets?

However, the losses will be limited.

Tenant’s vehicleor other possessions will occupy the parking space entirely at the risk of the Tenant.Tenant releases Landlord from any loss, damage, claim or injury resulting from anycasualty.”Should the tenant or I have additional insurance for a Garage Storage unit?

If so you probably have a loss.

I'd be happiest being quite an active investor and property manager.Of course, given my wife's job there's a also a huge incentive for me to qualify for real estate professional tax status and (if I'm reading things right) maximize our paper losses.

The taxable income from the LLC passes through to your personal tax return via a IRS Schedule K-1 and you include the income / loss on your personal return. 

I hired a lawyer who wrote a letter and was able to negotiate loss of just 1 month of security deposit vs 3 months of rent that was earlier demanded by property management company.

., the destruction threshold); which Property characteristics the destruction threshold percentage applies to, such as market value, assessed value, replacement cost, or unit count; for Properties with multiple buildings, if the destruction threshold percentage applies to each building, or all buildings as a whole; the replacement cost to rebuild per current requirements for zoning, and land use; the Property’s continued marketability, and economic viability; the amount and type of Borrower-maintained insurance coverage required per Part II, Chapter 5: Property and Liability Insurance, Section 501.02C: Ordinance or Law Insurance; insurance loss proceeds payout, compared to increased rebuilding costs, including from building code changes, Americans with Disabilities Act compliance, and the municipality's local zoning requirements (e.g., green compliance for new buildings, etc.); the sufficiency of estimated insurance proceeds from ordinance or law insurance and other coverages to repay the Mortgage Loan in the event of partial or full casualty, or condemnation; and for a Tier 3 or Tier 4 Mortgage Loan, if requiring execution of the Limited Payment Guaranty (Form 6020.LPG) would mitigate the risk of the as-rebuilt Property not supporting a Tier 2 Mortgage Loan.

We could sell and maybe take a loss or break even, based on other listings nearby.

While losing the 2.5% interest rate is tough, prioritizing a business structure that supports long-term growth might outweigh that loss.