@Joel OhA regular insurance policy can refuse your catastrophic loss claim if they find out you were renting your house as an STR.

But with gambling being so accessible, people are throwing away home down payments without even realizing it.💡 Are you seeing this trend in your network?

I can imagine this is a challenging decision to make.My thoughts:When hope is a key component of the plan of action, it is time to cut losses.

Like others have said, you cannot claim the tax losses until the funds are sold and "realized". 

I guess I am not sure what your goal is, but I guess funding capital improvements is one way to get involved in CRE, but like Don noted, if you don't understand the concepts of investing nor the specific risks of any of those options, then you are not investing, you are gambling at best, and throwing money and time away at worst.I.e. a quick search of Cincinnati for industrial properties under $300k, and I have about a dozen. 

The fact that this sponsor used investor money to gamble on high yield unsecured notes leaves a bad taste in my mouth.  

You are correct passive losses can only be used to offset passive gains. 

It's easy for me to get lost in the grind or to focus on goals instead of progress so I'm glad that I took this moment to remember where it all started and that was with a gamble on this one property that has paid off ever since.

Is that a gamble you'd want to take?

@Devakumar Sai Chinthala There are income limitations for passive losses, you should check with your tax professional.What will the property taxes increase to after you buy the property?