If there is no coverage, the question becomes, what is the value of loss taking into consideration depreciation? 

Here's some food for thought:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

I also know a professional property manager is more efficient, has better marketing, established policies to handle problems and prevent losses, knows and complies with the law better, and more.But maybe you can do it as well as the PM.

If it's a loss its a loss, maybe I can write it off on my taxes or maybe our story saves others from a similar pain.

The remaining 25% of the gross rent will be absorbed by vacancy losses and ongoing maintenance expenses.When using a lease agreement, the lease agreement amount must be supported byForm 1007 or Form 1025, as applicable, orevidence the terms of the lease have gone into effect.

My personal advice is cut your losses and move on. 

Investors buying 5% cap rate properties are most likely banking on rental increases while taking appreciation losses on their taxes as well as mortgage interest.  

The ones that are can clearly stomach the losses if that happens.

By splitting out the rental, voila, now you have rental losses which are automatically aggregated with all your other rental activities and are non-passive, even if you don't materially participate on it's own. 

It is obviously better to have $1 in passive losses to offset taxable income today vs $1 in losses 25 years from now.If I have a $1 million dollar short term vacation rental , using cost seg I will be able to deduct 35% ( example number, not exact) or $350k this year.