If a fire does, indeed, occur, and there is loss of life, you are going to be in major trouble. 

I insure for replacement value, not just market value, make sure you get rental loss reimbursement coverage.  

In summary, the end result in making a decision to own a house that is too expensive in lieu of starting an investment portfolio impacts an individual in three ways: Loss of time during which other assets could have grown in value.

I have about 3k in taxable income from stocks and I’m trying to understand how much of my losses I should sell off.I know the irs limits your losses to 3k per tax year.

I can't imagine any auditor worth his weight would allow that.This is a situation where if it sounds too good to be true, it probably is.  

Keep in mind they weren't built with the intention to hold that kind of weight.

Sit her down, have the talk, and work together as a team unless you see no future, at which point cut your losses and move on.

It's an A Class property , I gave it to students this time and I took a small loss to quickly fill in as the previous m2m tenant did not provide ample time to find another one during winter time just before the holiday season.

A good CPA would have suggested this from the time of purchase, so you could have been sitting on carry-forward passive losses today.My only true advice is to get a CPA.

Verbal conversations hold no weight.