I am at a loss to explain why anyone would buy investment property in any of the blue states, namely, Illinois, California, New York, New Jersey, and Connecticut.

Given the cash flow loss on the 7% property, I think I need to remove the emotion and make the right business decision for my portfolio holistically.

Even if you rent at a break even or slight loss, if you could have 3 years of rental income offsetting your mortgage while realizing 3-6% appreciation, could be worth it, especially if you think appreciating for this area will exceed national averages.

Buckle up, and prepare for total loss, or an additional capital call or two in 2025.

However, the Cleveland area is a net population loss area.

Eviction costs surged and so landlords needed to increase rents to deal with vacancy and collection loss and increase their screening standards.Then the eviction moratorium.  

@Kelly Taylor If you are going to invest more in RE, wait until you have released losses to do the Roth conversion.

The landlord policy will usually address liability and rental income loss for the rented unit, while the HO3 covers your personal belongings and liability for the owner-occupied unit.

A new person doing an OOS BRRRR right now is ripe for a loss.

I also had a passive loss for the rental property in 2017.