Some policies cover rent loss if there was damage to the unit and unihabitable for the tenant, as well as landlord legal fees, etc. they may be liable for.

Exactly the same building right next to mine closed a day later and sold for $250k ....Anyway; look at my numbers below and read explanation ...PGI = 2470vacancy loss = 4% 100EGI = 2370property tax = 309.4homeowners ins = 156.6utilities(common/water)= 165repairs and maint = 10% 250NOI = 1489debt service: PI = 1101.6monthly PMI 253positive cashflow 134After 6 months of research and looking at properties in the Chicago area, it was the best I could get.

My question is, given that that money is pretty much a loss and unrecoverable, and the work had to be done by another contractor who also had to be paid, can I chalk that money paid to the first contractor as a loss/deduction for the taxes for the year?

You don't necessarily have to shop in a high end area to make it worth your while, but you also don't want to buy in a terribly low area that is on it's way out - that's really only feasible for flipping fast when you run smaller risk of depreciation.

I have kept both the hard copy as well as the soft copy and the best part is I have it all in the cloud based platform where in there is no risk of data loss.

Also because they have run the facility so poorly (not very strict on collecting rent on time, not keeping good books and records, no written leases on a few tenants) and because they have been showing losses on taxes, they know it is hard for someone to get bank financing if the buyer can't service the entire payment from their own personal income. 

Unless you see some serious appreciation in that area within the next few quarters; If you are at a loss then you might want to walk away.

And you don't get to subtract the principal payments at all.If your AGI is under $100K (I'm guessing its not, if your total marginal rate is 46.7%) you can use a passive loss against other income, up to $25K.  

Heard from some people that they use a feasibility clause but am wondering if there is anything else that might work better.

. $17,000.My question is since I cannot continue to suffer any more monthly losses, cant' sell it as-is, and I cannot pay the management company for the repairs to make it re-rentable, What does a smarter person than I do in this case?