I have been with a property management company for 2-3 years in Arizona and the property is being run continuously at a loss.

For practitioners in the real estate industry, the biggest challenge is not just the difficult work, high risks, or immense pressure, but the necessity to learn to let go of complete control over outcomes. Certainty i...

There are several things to fear money loss on a bad investment, government involvement in RE, bad tenants that cost time and money, hidden maintenance issues and/or land issues and the list can go on.Today, I don't fear money loss or tenants,  the big unknown is how much the government wants to get involved in either taxes or landlord/tenant issues.

@Mohammed Islam, The claim of loss due to the tenant moving out for the sale COULD absolutely apply to the situation.

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.

It will be a lot of hard work for little to no pay (or loss) until you hit a point that will be long and hard. 

If I move to a partnership, what happens to my accumulated passive losses? 

The cash lost from my one investment that sold at a loss last year was almost completely offset by three properties that executed cash-out refinances in 2024. 

Taking the loss now is preferable to paying out monthly for the privilege of being a landlord.

If indeed a loss is taken on this which it sounds like is a fair possibility then if the agent was representing you the agents E and O will/could kick in and that's where you might get some financial relief.