Not sure what steps I can take to mitigate my losses.

Sure, we all want that short-term tax loss to offset other income, but ultimately you want to make money.However, in Grier v.

If at the end of the year I have ended up not making as much as my expenses is it technically considered a loss or since I own the house, has the house provided me more income?

But since J properties generally depreciate over time (not like properties back home which appreciate), the idea of sinking cash into a property that is worth less five years from now is not terribly appealing.Like you say, then the question is what sort of yield can you get, and will it cover the deprication losses?

This could be state dependent, but just illustrates some of the unnecessary complexity in a deal like this.

I stick to sponsors who have at least one full real estate cycle of experience with little to no money loss...ever, conservative leverage, high skin in the game, reasonable compensation ( so they aren't incentivized to push the risk envelope) etc. 

My wife and I had a loss during 08 meltdown, so she now against investing.  

I want to take this as seriously as possible so in my case, is this worth it, or is paying for a coach/mentor unnecessary? 

If I were to sell and build the two smaller houses, I could likely fund them enough from my gains on the current rental (and a little out of pocket) so they also cashflow ~$300-400/mo each.So, at the end of the day It’d be a wash or a little loss, cashflow wise, on one house and I’d gain ~$300-400/mo on the other house.

See attached Excel summary sheet.Investment Highlight89% Physically OccupiedSupply Index in a 3-mile radius of 6.8 SF/Capita, 5-mile radius of 7.7 SF/Capita, and 10-mile radius of 8.3 SF/CapitaAdditional Income generated from 4 mobile home lots and 1 mobile home (Not Verified, as thus not included in underwriting assumptions)Key Underwriting AssumptionsDown Payment 25% of Purchase PriceEstimating a CAPEX/Repairs cost of $150,000Estimating Operating Reserves of $10000Stabilized Vacancy and Concessions/loss to lease at 10%Using a cap rate of 7.23%Key Demographic DataTotal Square Footage 21,130 Supply Index: 6.3Population 3,338 1 Yr.