I've kicked the can down the road, and it ain't good.If you don't think a higher paying tenant will not show up, I would consider cutting my losses and trying to sell.

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.

So, if the tenant did that and got fired, you are the landlord would compensate them for the loss of their job?

Loss of income is another coverage that you will probably want to cover any period of time you can’t rent out the apartment due to a covered loss.

The income/loss flows to your personal tax return. 

From utilizing 1031 exchanges to offsetting gains with losses, the right approach can make all the difference in your investment journey.

That said, I'm considering selling the property to cut my losses before they happen.

@Rud Sev Your Section 1231 losses from the sale of rental properties were likely correctly reported on Form 4797 (Part I) as ordinary losses, allowing them to offset all types of income.

We like being aggressive in stock market investing but more conservative in real-estate given that we plan to use that for cash-flow eventually.The options are:We expect to have $200K/year in taxable savings the next 5 years (barring a job loss)- Pump all savings to the stock market & keep the current rental properties as-is and payoff the properties over the next 15 years using cash-flow for snowballing.

Risk of Losing Multiple Properties: If the borrower defaults, the lender can seize all properties used as collateral, which can lead to significant financial loss.2.