This “managed earnings†process can be played for an extended period, but ultimately the earnings - or more importantly “hidden losses†- come out in the wash.

I don't see any tax advantages to an LLC right now, its almost a wash with the way things are and I never found someone with a decent and detailed enough explanation as to why an LLC was better but if someone else has info I'm open to hearing it.

.#2: I could attempt to sell it at a wash (it was underwater for years since we purchased it in 2005) and clear it off my credit record.

Don't wash everything.

The hard times of the early 90's were much worse then the 07 shake out.You must be able to stay afloat during hard times, or all of your efforts (and your lifestyle, and maybe your home) will be washed away, and turn your cash cow into the Edmund Fitzgerald.

Some states it may be required, but not here.Your RE taxes wash out, rents and escrows, if any pass through as well.

Then, turn on every faucet, shower, and washing machine in your house.

In Portland there was a huge deal with a painter that pressured washed and scraped an old house.

We originally got it for fear of the heat pump going bad, but it has paid off for a new washing machine and refrigerator, as well as repairs for the hwh and central air.

Knowing I will be reviewed by my guests, I also take extra care to make sure the property is well maintained, including annual flowers as needed, mowing, paint, power washing, etc.