If the project goes sideways, you are not 100% liable for the losses.

There are other options such as harvesting capital losses on other financial instruments, but the stock market has been pretty good lately, so that may not be an option.

There's a high chance that you are feeling FOMO from the returns in public markets, sell your houses for a loss, pile into stocks, and then see mediocre performance while real estate heads back higher again.I see this, and similar actions, play out over and over.Personally, I'd stick with the real estate rather than selling it.

Here’s how it benefits you:•Faster Evictions: The expedited eviction process minimizes financial losses from unpaid rent and property damage caused by squatters.

@Pete Tarinthere could be tax benefits - you might be eligible for passive losses, but it would be specific to your situation. 

@Greg SeivertMost lenders that work with real estate investors understand that you may show a paper loss and they won't hold it against you.

It certainly sounds like you are taking the necessary steps to mitigate your losses. 

Selling your property now will incur commission fees, so you’ll take additional losses on the transaction.

@Jay Hinrichs @Patrick DesjardinsWe rep and warrant all notes (both re-performing and non-performing) to be a valid lien and to be in the lien position as disclosed at the time of purchase.Our current performance warranty on re-performing notes is as follows:"In the event that a re-performing note becomes delinquent, or enters non-performing status, PPR’s Loss Mitigation Department will notify the note investor within 30-60 days and then attempt to address and correct the payment issue prior to the loan becoming 120 days past due.

Hi John - Under the passive activity loss (PAL) rules, you can deduct rental losses against passive income.