So it should still be reported on your tax return, but limited by the passive activity loss limitations referred to above.Any rental property expenses and depreciation might not be deductible in the first year, but they carry forward to future years to offset future passive income (including the eventual sale/gain of that property).

If I had held I would have eventually made around a quarter million instead of losing 100k+.

Thanks in advance ;)  pay the tax. eventually will have to pay it anyways - rather pay tax now vs. buying a bad deal

If the landlord was aware of his past, yet rented to him anyway - any lawyer worth their salt would make a nexus between those two pieces of information and create a liability claim.In addition to the extreme negative press you would get, it also takes time, money and energy to defend a lawsuit you will eventually win.

Eventually I went to investment property (local purchase) and vacation home (2 out of state purchases).

Try to track days on market and price trends to see how well an area is selling.There is a housing shortage in general, so every house will eventually be a home.

I’m sure that will eventually catch up to me and I’ll have some problems but I feel the increased tenant pool outweighs any negative.

There can be more compliance work and potentially higher costs compared to just a Self-Directed IRA. 6) If you decide to rollover to a Self-Directed IRA first (your pre-tax money) you can always rollover that money into a Solo 401k when you eventually qualify.

Analyze the property's income potential and expenses and see how it shakes out while you live there and when you eventually move out. 

I think this would make sense in the long run for the rental property as it will extend the life of everything it touches like the Sink, faucets, showers, water heater, dishwasher, and Clothes washer while also providing clean drinking water in addition to the reverse osmosis drinking water system I already have installed.The main problem with this hardness level is that we get a major deposit buildup on all of these items, which will eventually clog up the faucets for tenants and lead to rusty shower enclosures that take forever to clean.In addition to this, it looks like we could likely have the salt added every couple of months by the property managers in addition to that it would allow for a quick inspection from them, and then also we would instead bill the cost of the service onto the ledger for the tenants.For reference, it does not look like the landlords in the area have water softeners.Thank you everyone for your input ahead of time.