With this strategy, you don’t need to qualify as REPS status to be able to take your real-estate losses.

Buy out the properties mortgages and sell it for a loss and try to minimize the total loss?

You do need to consider multi-state taxation and passive activity losses when doing this.

Don't be house poor or you may be houseless when the next downmarket, job loss, recession, or stubborn leak shows itself.If anyone is looking for advice on small software companies, or agencies, or balancing a startup during a day job, I will try to reply or answer DMs as best possible.

The nice part about real estate, however, is that since a property's tax value is depreciated over the course of 27.5 years (39 for commercial) that depreciation is considered a "loss" and counts against any positive cash flow you had.

Most landlords actually lose money for the first few years (if you're focused solely on profit AKA income - expenses) but the vision for most owners here is to bank on the strong appreciation of property prices in NYC.Shoot me a DM or text me if you'd like to chat further, happy to give you my $0.02 as well. 

Loss of privacy.  

Between paint and flooring that are sometimes needed, and months of vacancy, it would take me YEARS to recoup those losses even with new rent increases.

Hey Scott,To start discussing investment opportunities for purchasing the assisted living facility:Prepare a Business Plan: Outline your vision, financial projections, and strategy for improving the facility's performance.

Would you: A) Sell the lots now at a discount, take a loss but at least get some money back out to try and redeploy elsewhere.