I would consider exiting if you could do so without a loss. 

In fact  there's a company that markets quite heavily on this BP that sells uneducated investors formation packages that are completely impractical and unnecessary but there are plenty of accountants out there who do the same.  

I believe that would include permitting USPS to forward the letter.As already stated, if you can't reach them with your letter, then you won't be able to serve them a summons for a court hearing.Chalk it up as a loss and move on.

Many people want to get rid of those properties after they've used them "one more time".I sense that a lot of your hesitation is over the loss of cash flow until busy season. 

The building might never be a total loss but you very well could have a liability claim big enough for the insurer to investigate that.  

Read these forums for awhile and you'll notice a trend among new investors buying out of state in crappy locations strictly for cash flow (they tend to lose money for a few years then sell the properties at a loss).

I have literally lost thousands of dollars - so much passive activity loss that can pushed forward on my taxes.

Then you sell your rental at a $200k loss.). 

We haven't gotten into the world of short term rentals yet, so I'm at a loss at what is allowed, what isn't, where to look - she is going to check with her mortgage and insurance.

Also any losses from Y will flow into Parent Holding X for tax purposes and such losses will be adjusted towards active income.7) Use a revocable trust to replace us in the ownership chain to avoid probate issues and easy inheritance to our kids.