I do not think there is anyone here who has not had a loss in some way or form. 

Gas, fast food, etc.   

What you cannot do is deduct the overall loss, of which depreciation is a component. 

I was sharing with the OP that buying cheap properties in unknown markets in the Midwest (or South) is definitely not passive and may cost more money in the long run with not enough appreciation to make up for those losses. 

I recently had a client buy a restaurant building, the seller had purchased the building, spent a good chunk of change fixing it up, and then promptly went out of business b/c the food they were looking to 'supply' wasn't in 'demand' in that market (a restaurant's 'market' is the local area, a destination resort's market is obviously "the country" or "the world," so I think part of it is automatically solved in your case).

You can't take any losses. 

there's no gain, just a loss. 

I'm not comfortable buying a property with a negative $500 cash flow hoping future appreciation will cover the loss. 

Moreover, if the HOA goes up again next year, your loss is only going to get bigger.If you can sell your home for more than what you paid for it and you're not taking a loss, I'd consider selling it if I were in your shoes.

It's about:Curating Relevant Interactions: Filtering through the noise to ensure that discussions and connections are directly relevant to your goals in real estate.Ensuring Quality of Network: Prioritizing the caliber of connections over the sheer number, because meaningful relationships are what drive real progress.Streamlining the Process: Making every step from networking to deal closure as efficient as possible, which in turn maximizes your time and potential for success.The reality is, the market has been tainted by course gurus, leading to a loss of hope and increasing skepticism.