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.

.), 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. 

I believe in this so strongly that I have even once confronted a large advertising client about this issue when I discovered they had language to this effect in their terms of use in the past, and asked them to change their policy, at risk of material revenue loss to our company.

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!

I have loss GOOD TENANTS because they shared a porch with people they did not care for.  

I had clients in PHX  and Vegas that lost their 4 plex's because they went 100% vacant and stayed that way.. they owned 4 or 5 of them.. it only took about 3 months of negative cash flow and they were done.Max leverage loss tenants  lose property.. that's the formula..  

For a little background - I have been taking a big loss on this property for the last year for reasons out of the control of my property managers.What would you do in this situation?

I'm just a bit shocked and disappointed they could just close down my account and force this chaos on me to find another provider ASAP or face potential tax consequences and loss of my qualified status. 

There will likely be a partnership return required where you flipped a house with a partner and lost $120,000.If you sold the other property within the same partnership, it will also be reported on that partnership return.The net result to you is that you will receive a K-1 showing your income / loss which you then use to report on your individual return.If you made no money within the same year, you likely pay no additional taxes / get no additional refund.Best of luck.

Does anyone have an attorney recommendation in Texas or other recommendations to remedy this loss?