Take the last three years' Profit and Loss statements and average them together.

Some of these same GPs/Operators loss 30-40% of their net worth in less than two years depending on how aggressive they were in investing and how much cap rates expanded.But great GPs often have certain characteristics:1.

I had to deal with a lot more issues than I've ever had in non-S8 rentals like extensive property damage and also bed bugs, roaches, drain lines completely clogged up by grease (I learned what sewer worms are, look it up), spray paint art on walls and food on ceilings, noise complaints, police at the property, removing dead bodies, etc.  4.

Maybe you have some capital loss carryforwards lying around.

Hello everyone, I am selling an apartment building in California using a 1031 exchange (to buy property in the Midwest) and am wondering if I can use my passive loss carryovers and disallowed losses for that property to offset any boot because I am planning to use the cash pullout as reserves or repair money for when the replacement property is vacant. 

Just some food for thought.https://www.mobilehomeuniversity.com/mhp-mastery/the-new-par...

What you are proposing is the classic money loss situation unfortunately.

-Housing, utilities and food cost are around 14%, 8% and 6% compared to the national average making it a great place to live for families, college students and people looking to retire.

Also, have you grouped your properties, active or passive, to be able to use losses on one against gains on another?

I bought with a cash-flow on day-1 and could tolerate two vacancies before creating red-ink, so it's crazy to be penny-wise and vacancy foolish.I know there are those here on BP that harp on hobby vs professional business operations, but there's more to the bottom line than just GSI - - consider the opportunity losses created by vacancies.