Recession Risks Increase if Consumers Lose Confidence: Not only will financial market losses impact household wealth, they have the potential to undermine real economic growth.

Hopefully you collected some earnest money, so that this is not a complete loss of time. 

That means, if you can claim all of that loss in year one, that is a ROI of 18.3% on tax savings alone!

Do you deduct the "common/shared" expenses at the LLC level on the Schedule K-1 as "Ordinary business income (loss)"?

And, that's not including the loss of your escrow deposit.My recommendation is to close as you've committed, know you received $15k in closing cost assistance, and while your rate is higher - you're 8 years ahead of the interest rate curve on that alone. 

You panic and sell, then you have a realized gain or loss.

Unfortunately that's not feasible much of the time (I'm working on the feasibility angle).

Is D.C. a good area to get started or the outskirts of the city will be more feasible for a beginner?

And I understood since its passive income, the remaining losses will not apply to my W2 wages.

At this point it seems like my only two realistic options are to sell the house at a huge loss (as basically land for a new developer) or to try and build an entirely new structure, which will likely not make much financial sense.Anyway, that's about it.