If not, cut your losses, sell the home and learn from your first investment. 

They will have to sell it for a loss cause nobody in their right mind will buy that  The increased developer fees is only going to impact the seller, because they are the ones paying for it.

But if you place a tenant at $1,300 a month, you'll make up the loss in four months.

Do I provide my own document for what we're asking for that includes loss of use (and compensation for my time)?

However, when you get to forms 8582 (passive activity loss limitations) and form 4562 (depreciation & amortization), it's less math & more theory. 

Hi All - I've seen quite a bit of confusion on the application of the Passive Activity  Loss Rules and Short Term Rentals. 

Worst case, it gets outlawed in a town AFTER you’ve bought a place there & now you have to sell at a HUGE loss bc there’s no buyer demand once STR use is banned!

If the market slows down even just a little...catches a tiny little cold...you will lose all your money and the lender will likely take a loss also.I ran a distressed debt fund for 5 years, DO Income Fund, and we had hard limits when buying distressed debt.

However, I agree it’s better to just cut the losses now and learn from this crazy experience.

What you guys probably do not realize is that you cannot generate ANY tax loss when you rent out part of your house.