How can I lose???

You're going to lose your loan from what I understand.

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

Have you ever heard of a Landlord being sued by a Tenant and losing property?

- Land Contract would be better:)Question: how are you going to lose $2500/month if you rent?

There is a point where investing more loses money.  3.  

When one machine goes down you start losing money in a small way. 

Aren't they losing money?

Have you ever heard of a Landlord being sued by a Tenant and losing property?

Now rural counties and can be a little different but like Jonathan says every market basically has their players..