It depends on the profit/loss allocation on the operating agreement.

working with our auditors right now on ACL (allowance for credit loss) and learning about SCALE, WARM and all the fun and new CECL terminology.. 

Wouldn't rental property 2 generate its own loss due to depreciation? 

I have done things with attorneys, CPAs, stock brokers, insurance brokers and others successful in business.General business knowledge, understanding of financing requirements, knowing property valuations, maturity in personal financial matters to give general advice, understanding of the foreclosure process, legal aspects as to liability in leading someone into financial matters, fully understanding fraud issues and the differences in a general matter where fraud might be applied as generally thought of and what may constitute bank fraud causing or even attempting to cause a loss to an insured bank having different standards.

My reasoning is Midwest cities are often overlooked, downtown hasn't fully recovered from 2020 yet and it quietly has a lot of new construction, expanding suburbs and has major corporate headquarters (Target, Best Buy, 3M).P.S.

I’m very close to entering the STR market and I may very well be taking a major risk and loss being too late to game but i did decide to do what you recommended (before seeing this post).

Deficits, China selling, demographics, the great unwinding of globalization, the loss of reserve currency status.

Update is unfortunately looks like the home will be selling at a loss.

At the end of the day PM services are generally regarded as a loss leader for vertically integrated real estate companies that choose to self perform this task.

Save this post, because if you think you can find and manage Class C tenants from OOS, there's a VERY high chance you will end up being penny-wise, but dollar-foolish.Hopefully, you'll be able to recover from your mistakes & losses and won't have to sell at a loss.