After the rehab, we generally re-apply for a landlord policy and cancel the first one.A big part of this being reality is huge losses to the insurance companies where a so-called "investor" buys a property cheap, insures it, and then a short time later has a catastrophic loss and a large payout from the insurance.  

There really is no logical reason why the landlord should have to store the tenants items as opposed to getting rid of them or keeping them to try and recover losses that they incurred during the eviction process.

So suddenly your 17% "return" turns into a 20% loss.

Between the brawl with publisher Hachette over e-book prices, drones, and the Amazon Fire phone’s flop, losses are heading Amazon’s way."

My question is, do I need to change my tax strategy and not show a loss, or do I need to pay myself a wage? 

Asking him to never reply to another post of yours is rude and putting you at a loss by limiting yourself by not having the resource of Ben's advice.  

Everyone wants to fight for their slice of the loss to get as much as possible before releasing the lien interest.There are called "loan servicing guidelines" that a servicer has to follow.

Based on those two data points there is no deal.Understandably you are anxious to get in the game, and may have even jumped in without the resources of BP, but you cannot work the property and risk the loss of capital, for the reward of $20/month.  

Gross Potential Income $132,000 - Vacancy ($10,560) 8% - Concessions, Loss to Lease, Bad Debt $0 Effective Gross Income $121,440 Other Income (Laundry) $2,500 Total Net Income $123,940 EXPENSES Real Estate Taxes $12,500 Insurance $0 Contract Services $2,190 Trash Removal $0 Electric $0 Gas $0 Water and Sewer OR All Utilities $37,500 Legal $1,000 Management Fee 8.00% $9,915 Repairs and Maintenance  $7,500 General/Admin $1,100 Payroll $0 Other $500 Deposit to Replacement Reserve $3,000 Total Expenses $75,205 Net Operating Income (NOI) $48,735 Debt Service Principal $7,384 Interest $24,857 Total Debt Service $32,242 Total Distributions to Members $16,493 Member Contribution $234,163 ROE 7.044% Member Cash on Cash Return 7.04%

Here you go:PGI      Potential gross income   (say you get 1K per month--that is 12K PGI -VCL    Vacancy and collection losses+OI      Other income=EGI    Effective gross income-OE     Operating expenses+NOI   Net operating incomeMortgage payments are not operating expenses.