Good to hear... i'm factoring in an 8% vacancy rate in my per forma, hopefully will accommodate any loss expected .

I wish I had that in my first years and I am sure I would have avoided some pain and loss. 

What actions and/or credentials make a landlord an active property manager to deem rental income/loss active in CA?

For example I hold the core of my real estate holdings without debt (because I'm a conservative investor and I'm more concerned about preventing a loss of money than I am with attempting to maximize potential return).

As for heat loss along the way why does it matter?

Originally posted by :Deal 1  sold this week at auction for a loss, probably a $4,500 loss, this is in my profit calculation.Deal 2 Bought for 20k sold for 45 with 10k down and 35k financed for 8 years at 8%  I counted this as a 45k asset but probably should have only counted it as 35 since the 10k has been reinvested and is reflected in other assets.Deal 3, bought for 10k and foreclosed on a non performing borrower, we will be all in for under 20k, and should sell for @ 45k, maybe more if we do owner financing.  

Most of my clients run their SFRs at a 25%-30% (excluding vacancy/credit loss) operating expense margin and most of the banks I deal with on their DSCR loans underwrite using 35%.

If you’re okay with moderate negative cash flow as a "forced savings plan," that’s fine, but I’d advise setting clear boundaries on how much loss you’re comfortable with per year.

My best guess would be you had carryover losses but consider the opportunity cost of burning them up. 

Quote from @Patricia Andriolo-Bull: Quote from @Henry Clark: Start Defamation of character lawsuit also loss of income.