So the loss due to Clayton County malfeasance was about 15 times what you'd have suffered in a county not Clayton, Dekalb, Fulton, or maybe Cobb, correct?

I have seen this get ugly for people who end up being forced to move/sell and take a deep loss or struggle to FSBO because they can't pay commissions.2.)

REO's looking to get assets off the books and collect losses, investors and families begin checking out early as holidays get near, etc.

It seems that it’s just one of those things I have to take a loss on.

My tax lady said it’ll be considered a loss and not to worry about it.

not speaking for Doug.. however we used to deal with the loss mitigation department when doing foreclosure rescues. 

I have a rental, and I have a loss on it in 2021.

@Dwayne Clarke going to take an educated guess that what you were cautioned about is buying someone else's problem.Over the last couple of years, many OOS investors bought a bunch of SFR and MFR properties with LITTLE due diligence.Many were sold Class C & D properties that they thought, or expected to perform like, were Class A or B.Once they figured out what the properties really were - via tenant nonperformance and never-ending maintenance issues, they looked to sell them.If you know what you are doing, their loss can be your gain.If you are new and do NOT know what you are doing, then you'll just be the next "sucker" that gets taken.

If my property burns down, the Loss of Use line item on my insurance would cover lost rent.

This is out of an article that should help you get your research started: A taxpayer may not deduct losses sustained in the demolition of buildings and their structural components.