No, you cannot create phantom losses this way.Some additional issues that we have not addressed:- holding rentals inside an S-corp has many tax disadvantages- you will likely jeopardize your $250k/$500k capital gain exclusion for homesteads- you will lose asset protection afforded to personal residences by most states- you will lose your homestead exemption for local property tax - your insurance will have to change from owner-occupied to rental, i.e. go up- and there's moreConclusion: there're reasons why nobody is doing this clever "strategy" but A+ for trying.

You''ll need more down and additional reserves.

Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential.

In addition to Wishing Well Hills, Decatur, Brookwood, and Smyrna/Marietta, you might also look into Powder Springs, Austell, and parts of Douglasville, as they offer more affordable options with solid rental markets.

If you are able to add an additional full bath, it sets you apart in the market big time! 

I told them I wanted nothing more to do with them.Then they sent me a cancellation contract, but their customer service accidentally sent me the wrong one—saying they were going to refund me.

But there are many things that can be done to greatly reduce the chance.For example, many sponsors are audited which provides an additional set of eyes.

Stand out, be unique, and offer something of value that you would love if you were a traveler (cleaning service, amenities, a theme, etc.)Happy to help you find a place if you want some help on the agent side.

Also go through a servicing company for payments to the seller, escrow can probably help you out with a recommendation for that. 

The utility company doesn't manage your property...they provide paid services until they're not paid anymore.