And since you just spent 100k rehabbing those 9 homes your at $254k purchase with YOU taking all the risk, effort and energy... plus the loss of income while you rehab and resell those 9 trailers which is going to take time. 

There are many CPAs here and many investors who think they are CPAs.The key issue to understand is: you cannot create any tax losses from renting rooms in your house.

Sometimes the depreciation alone is worth taking a loss for a few years.

Also be mindful of the fact property management is generally viewed as a loss leader in the industry and many make the mistake of self managing through employees  which costs more than hiring a 3rd party firm that has scale to offer mroe back office support, technology, in-house maintenance staff etc.

And you can claim the resulting loss if any.Your upper unit however works completely differently, and you cannot claim any loss on your upper unit.

If not and you're weary of dealing with this business you can always inform him you will begin advertising for a new tenant (which, of course, means there will be showings of the unit) and once a qualified replacement is found, his lease can be terminated.Sometimes when a tenant realizes there will be folks tromping through their place the bathroom "odor" suddenly evaporates.While you should not have to suffer loss of rent over all of this, life is too short to keep dealing with this nonsense.

My guess (as a licensed agent with 15+ years of experience) would be that it won't be a covered loss but again that's just a guess.

I mean, I'm seeing a large annual cashflow loss on this, but depending on market dynamics, you could come out ahead?

The incremental value of a higher priced booking can't offset the loss of bookings at the lower end.

Would you have net income or net loss without the cost seg study?