So we took the loss, sold the land, went our separate ways and after a long 2 years of solo searching for something in the U.S.

God Bless him and hope he recovers soon!

By default, a multi-member LLC is taxed as a partnership, meaning that profits and losses flow through to the individual members' tax returns.

We have some good Turnkey providers here but that product never appealed to me due to the entry price, declining rent as the house deteriorates and there is no real exit strategy without taking a sizeable loss for the first 5-7 years in most cases. 

If you overpaid in 2020-2023, based upon bubble multiples, the picture isn't as rosy.You have a choice to make:  Cut your losses or grind it out.

To give you an idea of how it change the Real Estate industry, the law contributed to the elimination of the capital gains tax differentials, the increase in the period for writing off taxes for depreciable real estate, and the limitation of the deductions of passive investment losses.

Behavioral economics tells us people experience the pain of losses twice as much as gains.

You can not deduct the down paymentYou can deduct any costs you incur to upkeep the property(Repairs, insurance, taxes, depreciaiton, etc)Whether you can offset the rental loss against other forms of income depends on whether the property is considered active or what your income level is.

This practice enables the Tax Commissioner to maintain a very high collection rate because the investor absorbs the risk of loss (but also the potential for profit).

If you do it anyway, then you must accept that you will probably realize a loss because those people will not respect the time, money or effort you put into a rental property and will just think you're a greedy bastard.