@Karen Higgins Short answer: If you OR your husband are not a 'real estate professional' then unfortunately there is a limit to how much of the passive losses created by depreciation (accelerated or not) can be used to offset your 'active' income.

My current hurdle (and I'm imagining this to become more prevalent with the federal limit on property tax write offs) is that our exposure with the LLC. having a free and clear asset is large and homeowners insurance is denying us when I ask for a LLC.

There are several more you should ask, but I was limited to 3

Either limit the PM fee to 5% in the lease contract or exclude NNN fees from the agreement with the PM company.

Or you would be forced to sell at a greater loss than you now face.Although real estate investing at the best of times is high risk what you face with this property, in my opinion, is a 100% gamble.  

I have seen countless C/D properties sell for a loss simple because the owner just wants to get out.Then lastly, for condos, most people miss the fact that you need to analyze the HOA.

However, what they don't realize of course is that this limits the possibility of a purchase to cash only for an investor because many lenders will not lend on a vacant property.  

I think the price they paid is not really material here because at the end of the day, they own the asset now and will be looking to maximize profit and limit holding time.  

You can tackle the smaller ones first to ensure your DTI is within underwriting limits.

FHA 203 limited loan.