-Do you see a potential loss occurring?

The depreciation is taken at the syndication level - generally a partnership, so if it is rental real estate, your K-1 will show an  amount in box 2 - net rental real estate income (loss).

That's awesome, but that wouldn't help with my first goal of diversifying my income.So, I'd love to know if it's feasible to build up to a reasonable monthly income ($5,000+) within 5 years of starting to buy rental properties, even if that means not reinvesting any of the profit.I'm totally willing to put in the work, but if this strategy is best for long-term wealth building, knowing that upfront will help me decide whether or not to pursue a second business.Thanks!

Otherwise, you can deduct the business portion of it.You're confusing the issue of passive losses with running "trade or business."

Maybe we just leverage less, or maybe we get 2-3 months deposits in the future....or like some places 1st and last month's rent (in my market we only get 1st month's rent currently in most cases) or maybe there will be loss of rent insurance, and plenty of other solutions.

This of course is a moot point if you don’t have any gains or the gains you have are being used to offset capital losses that you are carrying over from prior years or you expect capital losses from stocks or equivalent investments from Covid-19 (although I would also say not to sell when things are low).

Not renting to these tenants and waiting for a better applicant due to the recent job loss. 

It will take some major job losses in Austin to slow down the pace of buying and major consumer loss of confidence.

Not renting to these tenants and waiting for a better applicant due to the recent job loss.

Time is money.... you may be able to fight this legally but that will take even more time and more $$ and in the mean time you can't sell it.....Eat the $$ to re-do the floors and move on..... that $$ loss will be less than the legal fight that you may never even win and all the loss from a delayed sale