Demographically, very slow (sub 1%) population loss is fine, these things tend to rebound eventually.

There could be other factors that fit as well, missed payments, illness, job loss, vacant, poorly run rental.

@Chi Zhang I take it that you are trying to use the depreciation and expenses as a loss to offset W2 income? 

Often the "student" doesn't do his/her due diligence PRIOR to choosing a mentor / coach, resulting in a loss of money and little to show for it.

Have a property (new build) in North East SA, rented for a year & unable to rent for almost ~10 months now, selling in this market would incur > 100K loss as impossible to compete with builders.

I’m new to investing and have a flip with a big loss under my belt and am very fearful to pull the trigger again, but know that real estate is the way to freedom.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

It’s crucial to have a solid agreement to mitigate these risks.The Ugly: Without clear agreements, co-ownership can lead to legal battles, credit issues, and potential loss of property.By carefully planning and seeking professional advice, you can navigate this situation effectively and find a solution that works for you and your family. 

remember payments may only be 400 a month at best.. 6 months reserves is a whopping 2400 dollars.. so someone theoretically with less than 10k in cash could get into these properties.. this William I personally think is highly dangerous for lender and for buyer... its not losing the 10k that's nothing its getting your personal credit trashed when you can't make the payments because you lost all your cash.IMHO if you want to be in the rental game you need 20 to 30k liquid at anyone time that you don't have to borrower etc.. this will insulate you from taking a loss. as you build units of course its not exponential but you need a base.And since this is not TRUE cash equity only paper equity there is no hope of selling them for a profit or what you have in them..