But don't despair because although this is the case when you look at it myopically, in reality most investors go into multiple deals accumulating 100s of thousands of passive activity losses in their first few years investing.

I'd be unwise to expect meaningful investment returns (in terms of dollars, relative to my income or expenses) with little to no net worth, poor credit, and when living paycheck to paycheck, for example.The point is to invest from a strong financial position - one where you spend less than you earn, accumulate capital, and invest it regularly, in chunks that are meaningful.

With a basement renovation project, the real costs start to accumulate with the finishes you use.

(I do document the accumulated infractions).Getting a tenant out due to non-payment of rent is the quickest and more successful way in NH.

Yes.Lease Option PurchaseLand ContractUse PartnersUse any or all of the above to accumulate cash, then use that cash to go in.

The seller agrees that they may not claim any interest payments beyond closing date in the amount of ___ for the tax year 2015, and that they will forward all 1098s received within 10 days.7) the buyer is under no obligation to pre-pay or refinance the existing loan in any circumstance.8) seller agrees not to enter into any agreement with the lender dealing with payment of principle or interest9) the seller releases all financial interest in the property, not limited to insurance payouts, refunds, escrow accounts, future sale of the property, etc...10) that no part of the document will be construed as a personal liability to the lender, and doesn't modify the seller's obligation to the lender.11)indemnifications, severability, governing bodies, heirs, singular and plural, voluntarily and knowingly, blah blah blah.Disclosures1) Defined the exact nature of the transaction, purchasing the property, not an assumption, lender does not consent, etc...2) We stated that the lender WILL find out, and the risk was not in discovery, but if they decided to accelerate the loan.3) That the buyer could lose all accumulated equity if unable to prevent foreclosure4) That without a formal payoff that the Buyer is taking risks that the loan amount is what it appears.5) That the seller's credit rating could be affected by a payment default6) That, in the event of foreclosure, if the seller wanted to protect their interest in the property they would have to pay the full amount to the lender, that that a foreclosure by the lender would leave the seller with no recourse against the property.7) That the seller may be held personally liable any moneies resulting from a deficiency judgment if the lender didn't recoop their entire balance at foreclosure saleAlong with some other legal mumbo.

Real estate investing is for those aspiring to be wealthy( or financially free and not bound by a job) by accumulating appreciating assets, reducing tax burden, depreciating debt, and second source of income or cash flow.   

...easy, because all cash buys:1 - ...increases how much the property costs the investor,2 - ...if the property is negative cf with leverage, you can pay for all of your negative cash flow upfront3 - ...It increases the risk you have in the property4 - ...it limits the amount of properties you can gain control over5 - ...it reduces the value of your equity6 - ...it eliminates all of the free equity you get from appreciation and the tenant's rent7 - ...it eliminates the power of compounding from your REI8 - ...it dramatically slows down your ability to quit your job and replace it with rental cash flow9 - ...it takes you longer buy your next property10 - ...it delays the date of profit since your accumulated cash flow has to equal what you paid for the property out of pocket bore you can record any profits11 - ...it,...wait a minute,..., you were asking for the reasons where buying all cash was a GOOD idea. 

If i had a long time line I would dump it into hardmoney lenders earning 11-14% per annum doubling it ever seven years so around 42 years later I would have accumulated $64Mil sit back an retired in luxury.

Since then I have accumulated a wealth of knowledge and a handful of contacts that specialize in all four of those aforementioned types of REI and many other things that I did not even know was possible.