The loss isn't going to ruin me and I'm not cut out for this business.I am on a K-1, not a W-2 and am wondering if I would be able to deduct any/all loses if I sold the property now in spite of having held it for less than one year?

@Joshua Wileczek - You're missing a number of factors you need to take into consideration.Your monthly budget should include all of the following on top of mortgage, PMI, and taxes:Repairs - $160CapEx - $160Vacancy - $136Property Management - $160Insurance - Somewhere between 50 and 120 a month depending on your coverage and agent.In that regard  Here's how the numbers would break down Rent $ 1,700.00 Mortgage/Taxes/PMI $ -1,150.00 Repairs $ -160.00 CapEx $ -160.00 Vacancy $ -136.00 Property Management $ -160.00 Insurance $ -75.00 NOI - aka..cash flow $ -141.00Based on this math it doesn't look like a good investment to me..and is the reason why in spite of living in Southern New Jersey, I don't actually invest here :)

I would say that being in an expensive market has been an advantage and is a major part of my success, rather than it being a disadvantage and my success has come in spite of being in an expensive market.

If inflation creeps up, rents and prices will rise in spite of the fact that you may be right on everything else.

You  may struggle financially for a few years, but you'll be in the city you want to live in, and if you pay attention to the little moments of each day you'll find happiness and growth in spite of the struggle.The last think I'll tell you is DEFINITELY start investing in RE as soon as you're able to. 

Great job for getting through it relatively unscathed (aside from the time lost and mental drain) and turning a profit in spite of the issues.

I am cash flowing pretty well and have a good amount of equity.BUT what if I made the same moves back in 2007: In the same neighborhood, prices decreased ~ 40% from peak to trough, rents maybe appreciated ~10% but experienced higher vacancy rates"Made up 2007" Purchase:Purchase Price $350kRennovation costs: $30kMarket Value after Rennovations: ~$415kMarket Value as of 2012: ~$250kMarket Rents: $2,850/month2012 Conclusion: Crap, on paper, I have zero equity in spite of my initial "forced appreciation" and have nothing to show for my $30k rennovations. 

He is a nice guy, but in spite of having over 20 years experience as a realtor, he seems to lack both knowledge and a high level of ambition.                      

In spite of potential margins, not interested in the hospitality model.

I did decide to go with a professional "trauma" cleaner in spite of the expense so I will be able to tell potential tenants (and their parents since these are primarily student apartments) that the apartment has been professionally cleaned and disinfected.