I had over $5k in loss from the break ins. 

Even if you pay back your 401k at a 5-6% interest rate you’d have to hope for higher returns than that just to make up for the loss of the compounding interest.

If the results show a loss, that will be added to your liabilities. 2) If the income shows on your schedule E of the tax return.

If the market stays flat for 5, 8 or 10 years (which isn't uncommon) you have to hold the property, otherwise you'll likely sell at a loss. 

Will your losses get limited?

@Nathan G.Mitigate losses.

Long story short, I would like to funnel all the rental income from my properties to my property management LLC and pass profit/loss onto me after deduction.

If you or your spouse actively participated in a passive rental real estate activity, the amount of the passive activity loss that’s disallowed is decreased and you therefore can deduct up to $25,000 of loss from the activity from your nonpassive income.

In the third and final segment of Real Estate Tax Deductions, I want to discuss At-Risk Rules, Basis Issues and Excess Business Losses.

Meanwhile, they keep paying their mortgage and suffering while you're probably charging a minimum management fee and with very little threat of financial loss.