., mortgage interest, repairs), and up to $25,000 in passive loss deductions if your MAGI is under $150K.

So monthly expenses are $2809.I'm assuming for the sake of this conversation that you charge $150 per night and are occupied 50% (15 nights a month), so your projected income should be $2250 per month.If the above numbers are accurate, you will have an operating loss of -$559 per month.

If your AGI exceeds $150K, passive loss limitations apply unless you qualify for Real Estate Professional Status (REPS).This post does not create a CPA-Client relationship.

Be mindful of a gift tax implications if you sell a house for less than FMV.Also be mindful of transactions between related parties when selling at a loss.

And for example if they see a property was taken back by the bank and is not shown on the track record as a huge loss, then that is another type of red flag.Internet searches can also be done on the sponsor looking for lawsuits, etc.

For instance, in my private lending, I dont really give a numerical credit score much weight, but I absolutely look at the composition and history of the individual tradelines on a report if the borrower is a smaller outfit, such as a single member LLC or similar solopreneur-type operator.

We have life time losses to uncollectable rent/financing payments to prove we back up this claim.   

I am sure it will all work out for you in the long run.. we sold ours and made a tiny profit on each but its better than a loss right ?

Part of those cuts included the short-term rental tax loophole, a strategy real estate investors can use to help mitigate their rental income tax by offsetting earned income with real estate losses, and could be renewed or extended.  

No, it would be a total loss.