@Jon Crosby and @Andrew Wong Thanks for answering.From what I have read you can deduct net losses up to 25k if you are part of actively managing your property.https://www.biggerpockets.com/forums/51/topics/347...https://ttlc.intuit.com/questions/3059105-does-rental-deduction-deducted-from-only-rental-income-or-the-entier-income-including-w2-income-for-exampleIf this is true, and say Rent minus all cash expenses leaves you income of $2500 a year from this property, but then you can write off depreciation and other non cash expenses leaving your taxable income at a net loss of -$4000. 

Jon

Originally posted by @Jon Crosby:@Justin M Christian, I like where you are headed here. ;)   Probably like you, being in technology I actually enjoy finding clever technology solutions to those inefficiencies.  

@Jon Holdman correct!

@Jon Blownerd- PM me and I can provide you some contacts.

thanks Jon!  

Thanks Jon,I agree option 4 is by far the easiest, and while it would be an acceptable profit I am just unsure how often I will come across a deal like this.  

@Jon Holdman I think you understood where I was "trying" to understand!

Thanks so much for the advice.Originally posted by @Jon Holdman:This is not a real estate issue. 

Originally posted by @Jon Holdman:If the borrower is refusing to pay and refusing to hand it over foreclosure is your only choice.