If either property has paper losses that exceed the taxable income of the other, that would neutralize taxes due, but your goal should be 1) produce as much rental income as possible and 2) maintain the property while carefully tracking all expenses and improvement costs so you are only taxed on the appropriate amount of income, if any.

The question is do you have a clear path for that money, the discipline to use it only for assets that will produce an income to pay off that debt or service the monthly payment.

So you are limited rental income produced from the tax returns. 

We have been actively working to put together the talent pieces that could eventually produce something fairly extraordinary.

It sucks that people in your circle don't understand or can appreciate what a life-changing decision you made by buying an income producing property! 

The properties I had were not producing enough cash flow and I decided to make that my focus for a bit. 

You'd have to run the numbers, but generally adding a 2nd story doesn't produce the kind of rent needed to justify construction cost + loss of income for the 12 months when its shut down.

However, my client is one that does one heck of a job in his market and is a one of my top producers so I look at this from that angle he needs the US income so he can build his resort or resorts on those islands. he has a play on the Islands I can't really go into on open forum but it seems pretty unique but nothing like I said I have an interest in personally at our age. maybe if we were still 30 YO and immortal I would have  a different perspective on it all. 

If you guys cannot seem to make sense holding a property that produces little to no cash flow, try doing some flips! 

Most real estate vendors are not busy right now unless they're experienced top producers.