Dispose of this apartment and redeploy your capital.

The other thing that people often forget is that in a larger city like San Diego you have a lot of rental demand and resources at your disposal.

Each state varies in what the landlord may be required to do with personal property left by a tenant.So check before you dispose of something,, just because one state law says you can put on the curb doesn't mean we all can..Minnesota has to inventory and store. know your state landlord tenant laws.. :)

Phase I: An assessment and report prepared by a professional environmental consultant who reviews the property, both land and improvements, to ascertain the presence or potential presence of environmental hazards at the property, such as underground water contamination, PCB's, abandoned disposal of paints and other chemicals, asbestos, and a wide range of other potentially damaging materials.

Usually a house rehab should start with demolition and that only costs the contractor time and a few bucks to dispose of the waste.

If you get to a point where your passive activity losses exceed your passive activity generators then you'll just have a passive activity loss carryover to the next tax year(s) and they carry forward indefinitely until other passive income can be offset with with the loss carryovers or you dispose your entire interest in the property to a third party through a taxable sale event.

In your experience, could one possibly hit the $24,000 monthly net-after-tax rental income mark in ten years time if: (1) they had $120,000 at their disposal every single year to invest for the next 10 years; (2) they could re-invest all the rental proceeds generated during those 10 years? 

(2) Would you take some deduction for the existing components (tub, vanity, etc) that were in good working condition yet were disposed? 

Is it hooked up to a garbage disposal?

As a family with one income we don't have a ton of disposable income.