Here’s what I do with my rentals:I either have tenants split the utility bills or include a clause in the lease that states if the gas or water bill exceeds a specific amount ($X), the tenant will be responsible for the overage, provided there are no leaks or other infrastructure issues contributing to the high usage.To determine this $X amount:Water: I take the highest water bill I’ve had over the past year (excluding periods where leaks occurred) and add about $15 to account for small fluctuations or potential increases.Gas: For gas, I calculate the median bill during the winter (when usage is highest) and the median bill in the summer (when usage is typically lowest).

The equivalent tools to Priceline have been in place for the transition you describe to have occurred 20 years ago.

One, the investment may have been one that worked well but a mostly unforeseen occurance happened, to either the economy in general or to the subject investment in particular.  

I’m aware of loss harvesting when it comes to stocks, bonds, etf’s, etc. but how can this occur with real estate?

Capex- how much capex is needed, and what happens if only xx% occurs?

For example, you may reduce the maintenance and capex to 5% and then discover turnover occurs more often than you had planned.

To date, they have not fought the fraud charges or I would be testifying, that may still occur. 

Ownership does not transfer to the Mortgagee unless this step has occurred (in this process path) and no bidder shows up at that auction outbidding the minimal reserve given from the Mortgagee.

I must abide by the law and trust that mandate enforcement occurs even though I don’t see signs of it.

There is no demand at-all for these properties.So in a worst case scenario as you state, the amount of money to be lost may be smaller, but it has a much higher probability of occurring than say a California property not appreciating over time.