The K-1s I received all show a Net rental real estate income loss on Part III line 2 as expected. 

From a tax planning perspective, you are only allowed to start writing off the home once it is placed into service (once the lease starts).You are also only allowed to write off the depreciation, and any other costs or losses against the earnings from the property.That is, unless they get the real estate professional status, which requires 750 hours a year working in real estate.

@David Butler is it high risk though (aside from a depression) in 2008 crash and years following homes here half the size of mine were still selling for 600-700k.....When I look at my worst case ( I would have to sell alot of my rentals to pay the hard money back in full) But other than that, I dont see much risk other than my profits beginning to dwindle to a 100-200k loss....

What similar properties in the area are selling for, etc…).Gain does give you stock basis, if you were to sell or dissolve the first LLC, so there may be benefit of doing this transaction in the same tax year to ‘link’ gain and loss.

Honestly we would be ok taking a small loss and coming out of pocket for the difference and just consider it like a monthly retirement account contribution.

If you're investing out of state, you will almost certainly be classified as a passive investor which just means you can only use (paper) losses to offset income from other rentals/passive activities.At the end of the day though, look at the tax side of things as a nice cherry on top rather than the thing that makes a deal work for you.

I think should like second one: no obvious food and removable oily thing on bottom, side or any place.

So how are banks, lenders, and investors navigating the turbulent waters to mitigate risks and seize opportunities.Banks' Resilience and Caution: Despite reports of office towers selling at steep discounts, major banks have managed to dodge significant losses in the face of mounting defaults.

It's 2 properties, single family homes, in the SF Bay Area.Sharing some details that might help inform the decision, let me know if anything else would be relevant.One property fully paid off, generates between $20-30k in profit after expenses (property taxes, hoa, insurance, etc).The other property is our current primary residency and would operate at a loss of about $10k/year.I plan to travel back to the US at least once a year, could that be a deductible expense with an LLC? 

It could be argued that the higher the cap rate is the less likely the property will be profitable so a lower interest rate only means your loss will be less.