You create LLC for asset protection and has nothing to do for writing off expenses.

To me they really are just two different types of assets in two different types of markets. 

Then it will go to tax sale and typically back to the county.The mortgage company could try and repair the property to protect their asset but it depends.

Unless you have significant assets/equity in other properties the lender is taking on 100% of the risk if you have zero money in the deal and if it goes bad you just walk away and lose nothing.

I’m not planning on making any asset changes until we’re through covid and back to more normal times.

If you violate any of these rules you could blow up your IRA or 401k and the IRS could force you to distribute all of the assets in the IRA or 401k.

Right now we are not selling anything or cashing out that equity - if anything I would look to acquire a property and find a HML that would cross collateralize one of my other assets so I don’t have to sell it but use it as collateral.

Most here are real estate investors and typically those are not viewed as "businesses" because they have no real value as businesses outside the value of the asset(s) owned.

Think of them as a firewall protecting your other assets if one has a loss.

We do tell clients about the shift in value over time, as the 1245 assets really do depreciate and the 1250 assets really do appreciate.