@Lucas Schlund the same thing that happened to all the STRs in NY City when their ordinance went into effect, as well as many other cities.Owners must comply and the government doesn't care about your potential losses:(

I'm sorry to hear about your husband's job loss.

You want to be careful not to bite off too much on a first purchase so maybe if more four units or less or available that could be a better starting point with less risk and more ability to learn without potential loss.

At face value, it sounds like you believe that some of the operators of MFH that have purchased in the last 18-24 months may have to cut losses next year providing new investors a much better deal.No.....

Are you able to take capital loss on taxes and if so how does that work? 

@Mary Jay why did you report it if there was no loss coming out of your pocket. 

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.

Hopefully its not a big loss.

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.