Just Breaking EvenWhile breaking even is better than a loss, it's generally not ideal.I would aim for properties that provide positive cash flow immediately to ensure you're making a profit after all expenses.

If so then folks could sell real estate, book profits based on the value of the Gold, but log a transaction that was technically a loss (tax write off) based on the face value of the legal tender.

My further step will be to go even lower and take a 10k or 20k loss that I might use for my tax return next year before the hard money debt becomes even more. 

There is loss opportunity costs.

Our first plan didn't work and we would have had to take a loss if we sold it.

@Sonal Chopra first it would be a loss of a family member which is never a good thing to lose someone.For the sake of the exercise.

No lender will qualify your income earned from a short term rental based on a profit and loss.

I feel that the coinvest should be meaningful enough to cause real pain for the GP in the event of a bad outcome, but not so much pain that a bad outcome or 100% loss ruins them or threatens to disrupt their lifestyle either. 

Banks/Lenders use a theory that if an investor encounters a loss be it in income, death, divorce, major sickness, or any other set back they are more likely to let their 2nd lien positions go in default before a 1st lien.Reason why I say this is although you have a great rate on the first mortgage you need to let it go and do a "Cash out refinance".

Here is my situation:I've owned and lived in my house as my primary residence for 3 years.Up until the last year, I have rented out spare bedrooms (space within the living area).I got married about a year ago and my spouse has now been living in the house as her primary residence for 12 months.Question 1: IRS publication 523 states in the section under Business or Rental Use of Home, "If the space you used for business of rental purposes was within the living area of the home, then your usage doesn't affect your gain or loss calculations.