I think Underwriting requested gross income to better assess "loss of rental income".

Reach out to me if you would like more information, and we'll see how much cash we can get back for you to offset your losses and expenditures (100% free to do the study, then they give you the amount of the savings and cost to get that money back, and you then determine if you want to move forward).There's also a FREE webinar discussing this tax strategy tomorrow, Wednesday May 15th, at 10 am PT / 1 pm EST that you may register for here (safe link): https://linda-b251e.gr8.com/Best of luck to you!

What if you run into some financial trouble and pricing declines, then you will sell the property at a loss and not be able to pay off the full HELOC. 

The K-1s I received all show a Net rental real estate income loss on Part III line 2 as expected. 

@David Butler is it high risk though (aside from a depression) in 2008 crash and years following homes here half the size of mine were still selling for 600-700k.....When I look at my worst case ( I would have to sell alot of my rentals to pay the hard money back in full) But other than that, I dont see much risk other than my profits beginning to dwindle to a 100-200k loss....

From a tax planning perspective, you are only allowed to start writing off the home once it is placed into service (once the lease starts).You are also only allowed to write off the depreciation, and any other costs or losses against the earnings from the property.That is, unless they get the real estate professional status, which requires 750 hours a year working in real estate.

What similar properties in the area are selling for, etc…).Gain does give you stock basis, if you were to sell or dissolve the first LLC, so there may be benefit of doing this transaction in the same tax year to ‘link’ gain and loss.

If you're investing out of state, you will almost certainly be classified as a passive investor which just means you can only use (paper) losses to offset income from other rentals/passive activities.At the end of the day though, look at the tax side of things as a nice cherry on top rather than the thing that makes a deal work for you.

So how are banks, lenders, and investors navigating the turbulent waters to mitigate risks and seize opportunities.Banks' Resilience and Caution: Despite reports of office towers selling at steep discounts, major banks have managed to dodge significant losses in the face of mounting defaults.

It's 2 properties, single family homes, in the SF Bay Area.Sharing some details that might help inform the decision, let me know if anything else would be relevant.One property fully paid off, generates between $20-30k in profit after expenses (property taxes, hoa, insurance, etc).The other property is our current primary residency and would operate at a loss of about $10k/year.I plan to travel back to the US at least once a year, could that be a deductible expense with an LLC?