The most likely scenario is that his renters will eventually do something that costs him a significant loss, despite cutting them a major break for so long. 

While you shouldn’t categorize all tenants and it’s the landlords responsibility to properly screen, the tenants who reside in better situated housing and pay higher rents are more financially responsible meaning lower rate of rent loss and will generally take better care of the property which combined will result in less time allocated towards management functions if self-performed or more favorable management fee structures if 3rd party management companies are utilized (which ties back to #1, as well).

Second, the investment may have been made anticipating a chance of failure; for example an investment may correctly analyze that it has a 50% chance of a 25% ROI, a 35% chance of a 50% ROI, and a 15% chance of a 50% loss.  

While I understand your concern, repeated reminders can feel a bit pressing and unnecessary. we have to track the source of leak source first.fix the source of leak if is coming from our aparement wait sometime to make sure there is no more leak and repair the ceiling

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

Our cleaning fees for the year were $40k, landscaping $2.5k, handyman $3k... all tasks that can be done by an operator and off set the loss of income from occupying the main house that brought in about $40k for 2024.My wife and I have decided that even though it makes good money, we have been in Texas for a year and we want to do something similar here and we are very much DIY people and don't want a PM company to run it to the ground.

We’re at a loss on how to resolve this and make our home livable again.

Uses the syndication depreciation losses to help offset active incomeI did read your post mentioned above @Michael Plaks which is very informative.

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.