Poor Tenant Screening = High Risk of Rent Loss & Property DamageGood property management starts with tenant screening.

Then I find out a week ago they sold the property at a loss, ALL my capital is gone, and Ken McElroy goes on his merry way making youtube videos about how much money he is making. 

I just found out the property is in a Zone A flood area, which means lower property values and a longer selling timeline.At this point, I’d rather take the $5K loss than deal with the potential headaches.

Real estate prices have softened and would create a loss of ~40K if we sold.

A real estate-focused CPA can help maximize deductions, structure tax-efficient strategies, and navigate complex rules like passive loss limitations and cost segregation.

You use the depreciation losses from Property B to offset the depreciation recapture & capital gains from the sale of Property A. 

That's a $40,000 loss per year after buying it for $800,000 below asking price and before accounting for maintenance, vacancies, capex, etc.Here's a guide that describes what good cash flow looks like and how to analyze a property.https://www.biggerpockets.com/blog/rental-property-cash-flow...

However, if the depreciation deductions create a net loss, this can offset other taxable income.To fully defer taxes, you’d need to reinvest both the full sales proceeds and match or exceed the prior debt level.

A complete loss of value is unlikely, but possible.

With more rentals it becomes less likely that a loss will wipe you out.