This home is in a great area within walking distance to an elementary school, a middle school, (both great schools) Whole foods, and the list goes on!

Realistically, I am never going to have over 3 total losses in discontiguous houses at the same time, so hopefully something like this is a legal possibility.My actual scale is a little larger than that but not way beyond that.

Here's a brief overview of my current situation:SFH1Acquisition Price: $1.6MCurrent Market Value: $1.89MLoan Balance: $1.2MInterest Rate: 3.75%Annual Net Cash Flow: -$12KSFH2Acquisition Price: $2.15MCurrent Market Value: $2.2MLoan Balance: $1.5MInterest Rate: 7.75% (I'm considering refinancing in the next few years)Annual Net Cash Flow: -$65KDespite being proactive in educating myself through BP forums and real estate literature, I'm beginning to question the sustainability of enduring annual losses from these investments.

Can I claim the losses as active against W2 income?

If it is a covered loss, the judgement would need to exceed the limits before anyone would want to go to the additional litigation to try to break through the trusts.  

.- Capital losses can offset gains (Short term offsets short-term and long-term offsets long-term)- Tax loss harvesting - If you have other investments (At a loss) sometimes you're able to sell them and offset your gain- Charitable giving- Paper losses from your investment propertyWith some more information, we can hone in on which options would be applicable for you.Hope this helps!

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

When class codes are enabled, every transaction can be assigned to a class code and from that information, you can run a Profit and Loss Statement not just as a total aggregate number but broken down by each property.

I cannot absorb that kind of loss continuously for the next year.

sometimes to make connection with good GC and contractor, is to buy them Taco and Tequilla, this would solve all problems in any relationship lol  Have you tried Mexican food in the Midwest?