I typically find a new tenant before they leave, or shortly after their leave, which prevents me from any losses and puts more money in my pocket.

I pre negotiated rolling any inventory that I could not sell or would have to take a loss on to 5 year term and rent them..

@Tommy BrantIt really depends upon the market, and I think the operator, their scale of operations, and their loss runs.We bought a deal from a mom and pop last year, and their insurance company saved us dramatically on pricing.  

I would suggest this going forward, getting a PM, like someone else mentioned.I hope you find a resolution to this but as previous comments have mentioned settling sounds like less of a financial loss than to pay an attorney and going forth with legal action.

Do the math: 100 car train, each car 100,000 pounds gross weight each.

No real weight to either. 

What Zach is saying here is that you won't be able to utilize the "STR Loophole" which refers to using any net loss from the STR business to offset any income from other sources like W2 income or 1099 business income.

W-2 income, but it’s subject to passive activity loss limitations.

You would need to factor in the cost of the conversion as that would likely create a loss, then we would need to know your depreciation schedule.

Most of the ones we won worked out ok, but one wreaked so badly of cat urine even after stripping out all the soft surfaces we cut our losses and sold it to a handyman unfinished who wanted to live in it and refinish it himself.