Actual loss would be more if I consider CapEx,vacancy, maintenance etc.But, my goal as a first property purchase is also not to focus on cashflow, but instead direct my rent payments to a mortgage while getting back any extra profits from appreciation and equity built from house hacking.In San Diego, If I house hack a condo, with a very low down-payment, I see that I'd have to spend 1000$ more than I would, while renting. 

The other option is to find your very own private lender (essentially just a person that has a large amount of cash themselves) and partner with them for the purchase or try to convince them to lend you money their money for similar terms as an HML except they do 100% financing.Either ways, run the numbers and weight out the costs and benefits.

So not much of loss on their part unless the lease has 11 months left.I am interested to see what others have to say.

20 x 20 would be 400 .Sometimes carports don't have the best roofs,  They need to be beefed up with extra supportto take on the extra weight of the conversion. 

I'd also weight the liquidity of the investment in considering your potential return.... if you lock yourself in for a year and there is a favourable shift in the RE market or in your financial situation, you won't be able to act...

You may be able to offset the taxes losses on the new property.

That being said, I don't think an appraiser will put much weight on outdoor amenities.

Did you have to prove loss of income for this?   

If you want to take the QBI deduction or an ordinary loss you better be issuing 1099s...

Whenever there is an insurance claim on a property, it will remain in a national property claim database called the Comprehensive Loss Underwriting Exchange (CLUE) for five to seven years.