Would you feel comfortable sharing your approximate "loss rate"?

Closing had some hurdles...but they had a vision for their portfolio (and within reason) were willing to get creative and stayed tenacious when the transaction got challenging. 

You likely won't be able to offset the rental loss with your W-2 income unless you can claim real estate professional status or operate it as a STR and self-manage it.The answer won't change even if you own the property inside of an LLC.Best of luck.

The thought is, if the structure is rebuilt, you would be in the same (or most likely better shape) than pre-loss.  

Another term for that is that risk of loss must have passed from you to them. 

I want a simple place to track my P&L's and tax implications like accumulated depreciation and tax deferred tax losses. 

@Ryan Thomson Sorry to hear about your loss.

For risker applicants, require a guarantor (who is not "judgment proof") to agree to pay for damages and unpaid rent.Unfortunately, you cannot eliminate all risks of loss, so there are times that a tenant may end up causing damage beyond the security or coverage you have to pay for damage, but the above items will help.

But if the loss was caused because of their poor workmanship do you want to have them redo it. 2.

The goal is to not eat losses every month for the next 5 years while I wait for rent and price appreciation.