You probably won’t be able to sell with 9 years without taking a loss.

If she qualifies and materially participates, passive loss limitations won’t apply, allowing you to offset your income with cost segregation and bonus depreciation.This post does not create a CPA-Client relationship.

Hi Rachel, first off, sorry for your loss, but it’s great you’re exploring ways to build passive income.

I was left in limbo, accumulating massive losses the entire time.After eviction, things got even better (sarcasm alert).Huge repair bill ( as expected )Of course the 15% fee for managing those repairs.First-month rent for the next lease?

I just can't accept such a constant ever increasing loss, even if I can afford it. 

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.

Accepting the s8 with later move-in then other applicants would result in the loss of rental income.  

What you have is a few guys that have way over 100 years combined experience with investors and investor deals and we know what it looks like when investors are at very high risk of taking a 100% loss..

I still think if I would have worked it out with them rather than jumping straight to court, I would have taken a smaller loss.

Two main reasons being: (1) debt does not increase your basis in an S Corp, which means your losses get limited.