I've been in REI a long time and have seen the good, the bad, and the ugly, but $60k of damage from one tenant indicates gross negligence on the part of the property manager.I'd suggest three things: 1) Study the contract you have with the PM company, and talk with your attorney ASAP to see whether a lawsuit is feasible/advisable, 2) Get at least three bids from other contractors on the repairs (and before you hire any contractors, study up thoroughly on how to properly vet and manage contractors--there's plenty of info about this on BP) 3) Don't do any more business with the PM company (or any contractors they refer), and keep them at arm's length while you discuss your legal options with your attorney.

I didn't know that I had to sign up this forum to talk with you.There are several things that I would have done if I were you:First, calculate how much your monthly income and expense.

What other kind of income can I deduct with Rental Real Estate losses?

My expenses will be 20k a year and I will Gross around $75k.

And it will be ordinary income tax. 

I've previously found cost segregation studies to be highly beneficial, particularly as a strategy to offset taxable income from both my full-time employment and rental properties.

Regarding what we're looking for, cash flow is a must, as we want to match our W2s with rental income as quickly as possible. 

Idenitfy properties with enough deferred maintenance for a discount and not enough for Full scale renovation.With 10+ unit properties, you can utilize more DSCR loans and drive the value through the income approach to valuation. 

In an IRA the financed portion of the property triggers whats called UDFI (unrelated debt finance income) which triggers UBIT (unrelated business income tax). 

Maybe someone can help me understand There is only 1 Saturday in a week and if more than 1 go vacant at the same time, it could spell problems.Plus, If you want to scale to 30units or 50+ units doing it yourself could also spell problems without the right systems and processes in place.Nobody will look after the property as much as you will yourself, but scaling your portfolio and not having just another full time job in real estate (Investing should be for passive income and not another full time job, right?)