Can a qualified real estate professional with a W-2 income above $150,000 be allowed to write off rental losses on my tax returns?

Cut the price in half and take a big loss.

Its not a huge loss it’s just annoying and they are stealing peoples money.

Also, what happens if you fail to maintain proper insurance coverage and their is a total loss due to a fire?

In the end, you may need to chalk that up as a loss as others have said. 

Based on the property history, and the area, if that has a strong potential of happening, then I'm interested.The property must also CF high enough to recover my cost (DP) within that same time period. 

You can bill them for two month's of loss rent as you work diligently to replace them.

Any 2nd lender has a much higher risk of a loss from the DOS, and that's if they can even wrap their head around the title/loan name issue.

My remaining mortgage balance is around $94k, so you can see that I’m already facing a significant loss in selling this property.

Downside is need for a custodian (they don't work for free) and you can't use depreciation, and you can't take a loss.