If the out going tenant puts multiple holes into the walls and therefore makes the property un-rent-able  until the holes are fixed, is the out going tenant responsible for the loss in rent income ( 1 month) and can it be deducted from the Damage deposit.

From a fire at a nearby property and resulting damaage to The Shelby", to delays in fire damage repairs due to Covid 19 restrictions, to renters not paying rent due to Covid 19, to an approx. 20% vacancy rate, to insufficient reserve funds, to an obvious lack business loss insurance - Passco continues to underperformance on every statement they made at their seminar - from the safety of the investment based on their previous track record, to the expected annual distrubution amounts paid out.

@Keith Marble you are missing a lot of the expenses (property management, repairs, maint, vacancy, loss to leas, reserves, etc.)There is no way insurance is $320/year for a $200K property.

It might also set the new property taxes rate, and your gains (or losses) rate...

The bank will sell at a loss and the next owner will evict.

Come to find out SC does not allow for out of State Sched E losses.  

He purchased lower than they paid, so it does beg the question of why they are leaving Memphis at a loss?

You would be hit with a 10% penalty, plus income taxes on the TSP, plus have less money growing in your TSP until the time you withdraw (opportunity loss).  

Are you saying total construction cost + loss of rents was $89k and you were paid $95k and pocketed the rest? 

If you've completed a BRRR and later on the rent falls below your expenses AND you're underwater, you're taking a loss.