.), how litigious is your state, your own loss history/ratio as an individual investor, the carrier's overall loss ratio in a certain state/area, the deductibles you've elected, etc. 

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.

However, as W2 earners, these losses are considered passive and can only offset passive income unless you or your spouse qualify as a Real Estate Professional (REPS) by meeting the 750-hour and material participation requirements or STR is used.

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

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.

Hopefully that upfront diligence plus a healthy contingency budget would suffice to keep me out of that scenario, otherwise I would foresee a guaranteed loss, or underperformance at the very least.

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.

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?

It's not just the taxes, but being able to at-a-glance look at expenses by the month and year, profit and loss calculating automatically, and even cash flow by property and total portfolio by month and year.Thanks for suggesting it!