They are worth their weight in gold when the rubber hits the road.

First, there a number of investment thesis' carried out by syndicators with unexpected headwinds, not solely betting on rates.  

At age ten, I walked half a mile twice a day to fill a 5-gallon water jug and carry it back home because we didn't have running water.

We invest in notes but prefer first over seconds because seconds typically carry much higher risk - for example a jr lien could be 100% wiped out in a bankruptcy whereas not happening with a firstPros and cons to all - if you at buying at auction with liens still attached most lenders will want the full payoff or foreclose

Excess business losses are capped for single individuals at $250,000 and for married individuals at $500,000, with any surplus being suspended and carried forward.

I am carrying the mortgage.

Aside from my banks, I just want to know what it is because I want mathematical confirmation that the crux of my actions over the course of a year (I actually track it about every few months if I'm not submitting it to someone) are contributing to rather than subtracting from my pot of gold. 

I believe those losses can be carried forward into future years so that when you are making money, you pay even LESS taxes on it and keep more in your pocket. 4.

Copies of leases & all amendments (anything verbal will not carry over - if a tenant fights it, then you negotiate a new agreement with them or they leave - Never make verbal agreements with your residents)2.

Generally, losses from your rental properties can only offset other passive income, and if your passive losses exceed your passive income, you carry forward the excess losses to future tax years.