Or the market tanks and the value of the house goes down and that creates issues (selling at a loss, who brings money to the closing table, etc.

I figure my options are to sell and take a loss (not ideal), or preferably find coverage that allows or doesn't care about the K&T.

Is only sheet rock .Like one of the colleges said for a rehab and flip is a great deal.Now if you purchase to live in it ..Definitely a loss.

Offset Gains with Capital Losses: If you have other investments that are currently at a loss, selling them can offset the gains from your property sale, reducing your taxable income.5.

Would you prefer they change their policies just to fill your rental quicker and then increase your risk of losses?

You'll want to keep track of these because they can Increase or decrease your at-risk amount and as a result the losses you can take as a partnerYou or your CPA will need to report these on your IRS Schedule K-1s for each of the partners in LLC. ...

Quote from @Landon Mizuguchi: @Michael Plaks if you're living in the house and renting rooms  (e.g. room hacking) you can't claim losses?  

The only thing is WY LLC will flow through the income and losses to our individual CA return. any insight on this matter is greatly appreciated as I’ve heard and saw conflicting things regarding LLC needs to be registered in CAthank you ! 

So, an overleveraged property that had no equity to begin with and now an additonal loss from the costs of selling.What could go wrong?

It’s emotionally draining, but I’m determined to honor his legacy by building a real estate portfolio, just like he did.On top of that, I’ve faced a lot of loss in recent years.