Agreed - plus two additional thoughts:1) I always recommend having your CPA also review the drafted operating agreement for the tax issues. 

My clients tend to have net worth of 1 million to over 100 million that are individuals.As you move up the net worth list cash flow tends to drop down on the list of concerns to maybe 3rd after wealth preservation and tax benefits.Residential is more of a work for yield play.

if it is unsecured loan that is the consequence, you lose they entire thing. as far as tax write off, sorry but none.

Sell or 1031 Exchange: If the property is no longer viable as a rental, you could sell and reinvest in a STR-friendly market through a 1031 exchange to defer capital gains taxes. 

@Jay Hinrichs send me a PM, this is my area of expertise and home state! 

They will handle the collection and distribution of payments, amortization, escrow accounts, and any tax documentation. 

Those buying to mitigate year end taxes for the 80% bonus depreciation.3.

Or sell using the 1031 exchange along with a partial 121 primary residence exemption There is a way you could take advantage of the 121 primary residence exclusion allowing you to take the first $250k of the gain tax free ($500k if married) and qualify for a 1031 exchange.Say you purchase a property as your primary residence (house hack extra rooms for extra income) and lived there for two years while stationed there.

So, we bought the property 2 years ago, based on the valuation of the property considering income from 6 units.The sale deeds (from 2018- 3 sales) I could get from the City and the property tax statements (2023,2024) show that the property is zoned as 411 (apartments).

Hence the lot on which the house resided was taxed at a 45% discount based on actual value, while the tennis lot was taxed at about 4 times what it should have been by value.