Don’t just stop at “they say.”Also, write letters to your local papers and other media about the city’s refusal to delist properties. 

If your income exceeds $150,000, your ability to deduct passive losses from rental properties is limited, and any disallowed losses carry forward to future years under the passive activity loss rules.Yes, the deductions can accumulate and roll over year after year.

Second, if one of the units has a vacancy then the other unit or two can help carry the bills.

My CPA put that as loss in my tax return and carried it over.Next year they sold the property for a gain of 32K.

My mortgage lender said they aren't able to do this and sent a letter saying it's not possible.

Like a letter of intent?

Just wanted to thank everyone in this fantastic community - what a wealth of knowledge you all carry!

You can get money from family and friends, you can get the seller to provide financing, often called "Seller Financing" or a "Seller Carry" or you can get a lender to lend you close to all of the money needed (I see loans at and above 90% of purchase cost + 100% of improvements). 

Traditional Lending for Investment:DSCR (Debt Service Coverage Ratio) loans do generally carry a slightly higher interest rate compared to traditional investment loans, typically 1-2% more.

@Matt Said, When you do the 1031 exchange the basis in your old property is carried over to your new property.