If the cash buyer coated the house with gold then it take years to sale or even a loss.

Not to say people aren't doing it and making money - and REI is local and not necessarily macro - but it's hard to justify a buy-and-hold strategy in a state that is experiencing massive corporate job exodus, increasing taxes, ballooning debt, and net population loss.

With respect to our tenants renter's policies, it will be a little more difficult to require this of low rent tenants but I have already discussed with my PMs and we are working on an approach to make sure they all have in effect policies so my policy is not first in line in case of a loss due to tenant negligence (even if we have to contribute to the cost). 

It was very eye-opening when considering high paying W2 jobs and tax losses versus real estate investing and using depreciation.

Since that's not the case, they'll have to either sell it and eat the loss by bringing cash to the table, shortsale it, or rent it out until there is enough equity to sell it.He doesn't need to get into a situation where she stays there and randomly stops making payments.

You want the nonpaying tenants out of there to stop your losses as soon as possible.

If it says, the cancellation is due to the loss, that is the important issue.  

The economy has no effect on my ability to carry the properties and a devaluation, provided I hold long term, is only a loss on paper.For myself I place a very high value on the opportunity value/cost of cash.

JL Crowder - If you're actively member managed, you can deduct any net losses from your real estate against active income (instead of only passive).

Bought a house mid 2015, did rehab work on it over several months, sold it in 2016 at a total loss of $25k or so.My question mostly is whether that loss can be depreciated or carried over several years, or has to be taken off only on my 2016 tax return.