If you were to be sued and loss, where would they fall in terms of collecting money?

I will recover this cost of new heating equipment in 2 years through the savings of what I paid this year for heating oil.

Alot of first time cost seg folks come to us with losses generated all excited to offset w2 income, only to find out they did not qualify for the STR loophole properly and cannot use the losses against active income.

Should I proceed with the deal or just chalk it up as a loss?

Do you file jointly with someone who has income that needs to be sheltered with RE losses? 

I don't know specific law in Washington but generally everywhere deposits can only be held for actual losses.

You could turn the matter over to a collection company (including law firms that do collections on contingency), but normally, they charge a very high percentage of what they recover, and you normally have to authorize them to settle for any amount the want to.

The benefit of them is that in most cases you insulate other properties outside the LLC if you have a loss. 

How am I able to recover my funds at closing without assigning contract? 

However, with this potential for monthly loss, even though it is a minor dent to my income, I am wondering if I made the right decision.