. :) I make some passive income through stock dividends but I assume the real estate depreciation could not be used against that.Seems like I need auto build and execute a plan to escape from the :( side :p

You can get away with that occasionally by accident, with a good reason, but why not wait the 30 days for the safe harbor?

My whole portfolio is here and following a similar progression of moving up.Purchase: $80k-$130kRent: $1200-$1500ROI: 10-14%Cash flow: $250-$350/doorAppreciation: Double digit (for past 10 years, will gladly send data)Location: C, B- (suburbs and certain markets)We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, mortgage, Amazon fulfillment, and more jobs.The bad reputation comes from OOS investors wanting $20k D market properties.

Or an auto mechanic to fill up your gas tank.

Make sure your property manager takes proactive measures, such as posting necessary pool signs and selecting appropriate furnishings that minimize accidents and owner liability.

Then there will be judgements, motion for discovery, garnish wages, garnish bank accounts, maybe their auto.

You can get (super cheap) a google number, and set up a property specific email address that auto responds with your rental application to sorta streamline the process.

Like, what are some potential tax ramifications for this type of conversion, will I lose out on any of my cost basis deductions, what happens to my $250k auto-deduction if two sales occur (either same or different tax years), etc. 

Really There should be something in your lease stating that tenant is responsible for any accidents or damages of any persons living or visiting the property .

After an accident the company got sued.