@Carolina Calvo I am so sorry for your loss.

A PM can cost you 10-15% per year but they can also keep you at market rate and protect you from losses.

Milwaukee got hit hard in the 70s and 80s when manufacturing jobs moved overseas, it took 50 years to recover and that has been going so quietly in the backgound that nobody took notice.

If you have millions of dollars in assets with a bank and are a private banking client, they will likely take a loss on your jumbo mortgage and give you a killer rate to keep your assets with them.

When you have a big cost segregation depreciation plus your big startup expenses such as furniture and supplies, and you then have a big tax deduction against your big W-2 income because your passive losses are no longer limited with your big material participation, it increases your audit risk a ton.

Example: Tenant experiences a loss due to some house issue.

I recently changed dwelling policies to State Farm and they include “Roof Surf Loss Settlement - ACV” in the forms, options, and endorsements section.

Major vacancies and loss of income?

Either way you will get a K-1 issued.For the tax issue please refer to CPA...but, my experience is that the passive losses will only offset passive gains.

Just Breaking EvenWhile breaking even is better than a loss, it's generally not ideal.I would aim for properties that provide positive cash flow immediately to ensure you're making a profit after all expenses.