In a short sale with a partial claim, your first lien position with the FHA loan takes the loss so the claim can be paid in full.

I appreciate all the food for thought!

Just as the tenant won’t voluntarily move out before lease termination because I found a tenant willing to pay more, I won’t suffer a monetary loss because they can’t or won’t fulfill their contractural obligation.  

Note this election MUST be made in the year of the dispositions.2) 1031 - There's usually no tax on gains or losses when swapping property for similar property.

While you can save huge dollars by increasing the deductible just a single percent, the downside can lead to catastrophic cash shortfalls in the event of a loss. 

The two additional units will be detached from the existing structure so there will be no interruptions from that standpoint.I have agreed to a temporary rent reduction at the tenant's request to compensate for the inconvenience and loss of the backyard during construction. 

Sometimes that job loss is the impetus to go full time a little earlier and it works.

. $550  / mth * 8 unit = $4,400 * 12 mths = $ 52,800 GRI  ****not $53,800****The formula for CAP = NOI/PriceNOI = [GRI - V&C loss + OI] - EXP  *****You did not subtract for expenses to arrive at NOI nor include a vacancy and collection factor****Assuming expenses are 50% and 100% occupancy (which 100% occ is not realistic all the time).

In many cases the mortgage company writes off the loss or goes after borrower depending on if they have other assets - if they do then they are gonna be coming after the owner

The benefit of the LLC is that it can help you avoid losses spilling over from one property to another or your personal finances.