It sounds like you need to consult with Eviction attorney, CPA/ Tax professional, Great Realtor and Lender for this.

They ended up losing a property worth around 1.5 million for back taxes of 25k.

When I talk to new investors, the first question I always ask is "Are you just looking for the investment benefits of real estate (cash flow, appreciation, tax benefits) or are you looking to build a side hustle business around real estate investing?"

That would cut into your expenses a good amount, add property taxes, insurance, property management, repairs, capex, and a small vacancy rate and you can see that number starts to go down rapidly.

It states that: "Should a tenant vacate the premises with unpaid rent or other amounts due and owing, the landlord may remove the deposit from the account and apply the moneys to the unpaid debt."

Market research, local expertise, networking, property management, financial planning, potential legal and tax ramifications, risk management, and long-term vision are important factors to take into account.

You're already doing the actions to build wealth over the next 10 years....Holding stocks, holding RE and paying down debt, etc. 

Can I deduct expenses (utilities, mortgage interest, taxes, etc.) on a Schedule E for my 2023 taxes?

A reference for me to keep track and make the year end tax paperwork easier. 

What are the tax ramifications of deciding not to rent a rental property and just leave it empty?