There is loss opportunity costs.

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

Shelter is a “human need” according to NASA, along with water air and food.   

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.

And 2) It is like saying...Everyone eats food, so food has huge competition, so it is better to start eating rocks!

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.

They found a cavity in the foundation with the cash mentioned in used twenty-dollar bills with random serial numbers wrapped in opaque plastic food wrap, and a sealed Home Depot Homer bucket behind it.

Major vacancies and loss of income?