Supply and DemandIn real estate, prices and rents are determined by the imbalance between the number of buyers and sellers.When there are more sellers than buyers, prices decline until there is a rough balance between the number of buyers and sellers.When the number of buyers exceeds the number of sellers, prices increase until there is a rough balance between the number of buyers and sellers.Rents follow prices.Higher prices reduce the number of people who can purchase, increasing demand for rental properties and increasing rents.Lower prices enable more people to purchase, decreasing demand for rental properties and decreasing rents.What determines demand?

It is career ending.Take the time to learn the law, know how to verify ownership and reduce the trouble you will encounter along the way.

Also look at your screening and management processes to see if they can be improved to reduce the chance of a it happening again.  

A DSCR loan could make sense for long-term stability and moving the property into your LLC, but the current 8% rates would reduce your cash flow. 

I was told by my realtor I could use my own title agent so I didn't know if that would help me reduce costs.

@Mike SavageIf selling everything feels too costly, a staggered exit strategy (selling financing) could help reduce the tax impact.

The extra month's deposit will cover most of that reducing the risk of nonpayment when they break that lease early. 

I do not want to invest in another property.Any ideas how I can reduce my 2024 taxable income?

Pay attention to the loan-to-value ratio; a lower ratio can reduce risk by indicating more borrower equity in the property.Building relationships with lenders is essential.

And if you reduce the amount, you are reducing your protection.I have tried both and I'm still not sure which way to go.Airbnb's solution (neither one, just a virtual deposit, in case) is the best, IMO, but vrbo has not yet copied this one (I wish they would).How are you dealing with this matter for those of you on VRBO?