Also, they will have taken their rental return into account, which carries on! 

Hi,A few years ago I purchased a 7 unit building with seller carrying the mortgage with 2% interest for 3 years that ends with a balloon The price was $310,000 and I put down $30,000.

Hi,A few years ago I purchased a 7 unit building with seller carrying the mortgage with 2% interest for 3 years that ends with a balloon The price was $310,000 and I put down $30,000.

This will suspend your net passive losses and carry them forward to a future tax year and eliminate the net passive loss allowance on page 1 of your 1040. 

Might carry on looking  around.

If you know a lot about the auto industry, buying up auto part manufacturers junk bonds carries less risk than a REIT for you as opposed to me. 

But, carrying the house for a year, plus utilities cost us almost 10K in out of pocket expense, then all the additional rental income missed over that year, which would be about 8K we really lost another $18k. 

One just need read the law for a very easy understandingThe preceding sentence shall not apply to any foreign taxes described in subsection (a)(3) or to any taxes described in paragraph (1) and (2) of subsection (a) which are paid or accrued in carrying on a trade or business or an activity described in section 212.And then the reference from the above law to IRS Code 212(1) It has been paid or incurred by the taxpayer during the taxable year (i) for the production or collection of income which, if and when realized, will be required to be included in income for Federal income tax purposes, or (ii) for the management, conservation, or maintenance of property held for the production of such income, or (iii) in connection with the determination, collection, or refund of any tax; and(2) It is an ordinary and necessary expense for any of the purposes stated in subparagraph (1) of this paragraph.And for even simplified version, just look at the IRS guidance on the subject...What Deductions Can I Take as an Owner of Rental Property?

The other is once he has the job locked down, he doesn't really have an incentive to fix it fast since there is no real reward at the end of it while you have to cover the carrying costs. 

If new debt is required, can a seller carry or private money be used?