. - If you rent it two more years you lose the homeowner capital gains exemption. 

In that case, the only way you could lose money is if your property lose value and you have to sell at a capital loss.

A couple years later, repairs, vacancy and turnover costs and you've actually lost money every month and you've decided to sell and buy in a more desirable area, but the property hasn't appreaciated, you have to fix it up to sell and incur transactional costs and you lose even more money. 

But if they use it to excess, then the electric bill will be much higher than anticipated and if that month of high electric comes during a time that the tenant is facing hard times, they are more inclined to pay for their heating than their rent.

The good news is, unlike when owning an individual note, by investing in the fund you cannot lose any more than your initial investment principle and you're well diversified among multiple assets.

If your partner is a contractor and wants to keep busy, that could be a different story, but I at least consider looking at long term ownership plans and flipping as very different businesses and a lot to learn on both, so not sure I'd risk losing money and time dealing with flips. 

In other words, there are certain parameters you have to be within when identifying replacements, so if a deal goes south for some reason, after filing the papers that identified that property, you might lose the opportunity to take a 1031 at all.

As is, it looks like the duplex would lose about 10k a year while the fourplex profit about 1k per year...that said Jersey City heights (duplex) is not rent controlled and would appreciate more than downtown Union City.

We have tenants that we have repeatedly put up 7-day curables but we do not want to lose them as a tenant.As for not paying, follow your systems for non-payment just like rent.

Because I’m unable to obtain an insured title for two years, I did not plan to invest in this property until then for risk of losing my investment.