Hey @Sidney Duquette so I am not a fan of buying properties that can't perform with the hopes that it will build equity to offset the losses.

Tax free appreciation and rents significantly trump the loss of depreciation and custodial fees.

However, it adds up quickly if you analyze the cost of turning the unit, marketing, vacancy loss, and your team's time to find a new tenant.

As the investor gains experience, they are not only able to more successfully foresee the “bumps” along the way, able to handle recessions, temporary negative cash flow, unforeseen capital expenditures without panicking, but will also recognize the opportunities necessary to turn a loss into a break even.

If someone had gotten hurt and sued for $1mm then these coverages would have kicked in.Having been thru the claim process on a total loss.

At this point I'm mentally prepared to take a loss and be done with it.

If you reduce to $2,300 and are able to fill the property faster, yes, you are "losing" $100 per month, but even at that rate, it would take two whole years to equal the loss of the $2,400 vacancy month.

From 2nd Mortgages to 1st MortgagesWhen I started, PPR was buying primarily 2nd mortgages. 2nd mortgages is essentially loss mitigation (helping the borrower get back on track and stay in their home).

If your AGI exceeds $150K, passive loss limitations apply unless you qualify for Real Estate Professional Status (REPS).This post does not create a CPA-Client relationship.

Assuming you don't have a mortgage that requires a certain level of insurance, you can get a stop-loss policy covering all the properties.