Instead, when you're at the point where growing your portfolio is feasible, I would set a value threshold (total dollar value) for each entity.

It's just a good idea for them, but for me, its contractual stipulation protects me from any claim from my tenant in event I'm sued for losses from some catastrophic or other events that causes tenant losses. 

Loss of Use / Loss of Rents: Normally, there is a 20% included limit.

That said, if your losses are not too deep, you may want to just move forward and chalk this up to a mistake you made (not staying heavily involved in the project to check up on it daily or at least multiple times a week.

Hi Ronnie, Super sorry to hear that happened, I would document everything you can clearly on losses accumulated as well as proof of negligence on construction you say he has not done correctly.

Less of a loss of revenue than discounting the rent by $100-200 a month.

Remember, you can ride the rollercoaster, but you only realize a loss when you get off the ride.  

You may also be hurting now because you didn't file a state tax return in those years because now you lose out on claiming the losses allocated to that state.Your accountant likely didn't want to file in MA because he would have to pay an additional cost to file there...or he was grossly negligent(or both).

I am early in my research, but It seems like PAL rules- passive loss options might be a possibility (I make less than $100000 and less than 25,000 in costs)?

You may need an Architect to perform a feasibility study if the codes are complicated.