Are you able to take capital loss on taxes and if so how does that work? 

If you have a strong foundation with capital aside it's easier to stomach.

Do you have any capital to use or will you have to use creative? 

That being said, I'm part of an experienced Syndication Group who invests not only in Multifamily, but also different asset classes:  Self Storage, Mobile Home Park, RV Park, and Retail - all to diversify the investment offerings.Reach out, and the next time we have an LP capital raise, I will send you the OM (and obviously info on our company) to review.

Real estate is a capital intensive business.  

Negotiated with a residential agent and purchased from a large capital group in the Des Moines, IA metro.

Reno is a good spot because of the various industries, proximity to capital in CA, recreational activities, and low taxes.

Use an operating account for income and expenses, a reserve account for maintenance and taxes, and a high-yield savings account (HYSA) like Capital One's 4% APY for idle funds awaiting reinvestment.

So my friend (business partner) and I are securing capital by selling our collectibles.

In your case that would be $2825/year or about $235/month.If your place is not fully rehabbed, you have nothing budgeted for capital expenses.