That will probably be more loss than what the pm would cost and then you wouldnt have to do anything  so property management will be needed.  

I predict half, or more, of these people are going to be shook out of the market, but in the meantime I have to sit in a holding pattern and wait for them to either be foreclosed on or sell at a loss.

The issue we are faced with is trying to sell our house without taking a loss.

I am presently working with a seller that has nothing to offer in support of his numbers and as such he is looking at taking a big loss.

Let me explain.For ex. the decline in oil prices and resultant job losses in the Houston market caused many Class A tenants to downgrade to Class B, maybe even C.

This means the bank isn't going to let the property go for less than the balance, because they would take an unnecessary loss. 

Everything else, not sure...Just on OOS investing, I personally sold my OOS at $120K loss about 4 years and best decision I have ever made....

If something happened and you would have to sell, if you didn't buy right then you'll be taking a loss.

Another quarter point and now it's a loss of 30k in buying power.As i understand it, house prices are not correlated to rates.

It's not uncommon to experience a paper loss during the hold period which is why its a very tax efficient opportunity.  2) If you experienced a cashout refi during the year, that is considered a return of your capital investment so is not a taxable event.2) Yes, a K-1 is what syndications send to the partners in the deal.