Returns are great if you get a good area and build a solid team but thats going to take some leg work in picking the right people that see's your vision. 

Quote from @Christian Pichardo: Quote from @Caleb Brown: Should you cut your losses and move on?

Loss of rental income is only covered if it is listed in your policy.  

Unless of course you actually have the money in reserves and would make up any loss.. that would be different..

I would like investment advice on how to help a person, grow and develop her vision of redeveloping old structures in the Milwaukee Metro Area.

Does anyone have an attorney recommendation in Texas or other recommendations to remedy this loss?

However, as W2 earners, these losses are considered passive and can only offset passive income unless you or your spouse qualify as a Real Estate Professional (REPS) by meeting the 750-hour and material participation requirements or STR is used.

It's not just the taxes, but being able to at-a-glance look at expenses by the month and year, profit and loss calculating automatically, and even cash flow by property and total portfolio by month and year.Thanks for suggesting it!

Loss of Use / Loss of Rents: Normally, there is a 20% included limit.

Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).