Tax and insurance: have to pay those for the property time to recover investment is 20 years assuming 1k cash flow - paying cash.I would love to hear your thoughts and experiences with either option.

Since the beginning of Q2 2014, the average growth rate for industrial-using employment in Los Angeles has been -1.1% per year, representing the average annual loss of 6,824 jobs.

If it gets harder to evict tenants, landlords will require higher deposits and rents to make up for those potential losses.

Probably not the best time to invest in hotel assets until economy recovers and there is some relief in rates.

Now you've lost 4 months of rent you are UNLIKELY to ever recover:(So, yes, hire an experienced landlord-tenant attorney.

The IRS in its Passive Activity Loss Audit Technique Guide published a sample Activity Log.  

Alec,From an Insurance perspective, ask the current owner to get from their agent "Loss Runs" for the past 5 years.  

The goal of any insurance company is to minimize there losses. 

Or one who assumes the risk of loss prior to settlement? 

So it wasn't a complete loss.