That shows up as an on-paper loss on the K1 for our joint LLC, which then gets split up proportionately to individual K1s for each participating member.

The way a competent loan officer would handle this is use this form:https://singlefamily.fanniemae.com/media/7746/display  This starts using the income or loss directly from the K-1 which will have already accounted for the P&I on the 1065.   

I only mention this number because at $150k AGI, the active investor allowance enabling one to deduct $25k in losses from active income disappears, as I understand it.My current portfolio:Condo (purchased in 2021 w/ 5% down)Single Family (purchased in 2022 w/ 5% down)Multi-family primary residence (purchased in 2023 w/ 15% down)Above-garage apartment and detached ADU are rented out.

There’s no indication that the leak is coming from the roof so it’s got to be from the walls or the ground but I’m at a loss on how to diagnose the cause and fix the problem.

If you're investing blind then you have a multiple of disposable income or have no fear of loss.

That gives me additional income and offsets the risk of loss if I have a longer vacancy once they leave. 25% sounds like a lot, but consider what it will cost them to find another rental in the next 30 days that will allow a three-month lease, plus the cost of moving, setting up utilities, etc.There's nothing wrong with trying to help out a good tenant, but don't hurt yourself in the process.

Make sure you get a "Release Fee" on each property; this is an amount that is to be paid to release a property as collateral in the event you need to sell, or if you have an insurance loss that insurance proceeds will be applied to the subject property and not to the whole loan keeping you stuck with an encumbered damaged property, remember they don't make construction loans as a second and the blanket loan won't subordinate (usually) to another lender, it could get messy, so have a release fee stated and understand how payments will be applied.A line of credit is not a blanket mortgage but a line of credit can use other collateral, different animal and it may or may not fit you needs.

Some landlords find themselves in a precarious situation when their rental properties consistently generate losses, leading to financial strain.

A tenant who wants to stay and is on a fixed income is likely to stay a long time which means you won't have excess loss to vacancy/turnover.

Quote from @Kelly Farmer: My experience:Bought: March 2021, $64,900Sold: April 2024, $48,500 - $5,000 (agent fees/closing fees/etc) = $43,500Rental income (rents - expenses): $5,600Average annual returns: 2.9% (approximate)Net loss at sale: $15,800Positives:1.