Or can they be written off as a loss/break even"?

Costs Non-recurring Closing costs - 6% of purchase priceMonthly  % Vacancy and Credit Losses - 5-10% of monthly rent Property Management Fees - 8-11% of monthly rent Real Estate Taxes - actual from folio # Repairs and Maintenance - 5-15% of monthly rent Rental Property Insurance - 2,000 Homeowners/Property Association Fees - 0 Capex reserve - 1% of purchase price Utilities  Water and Sewer - tenant Gas and Electricity - tenant  Garbage - tenant Cable, Phone, Internet - tenant - tenant

Unless you form a C Corp or elect C Corp status (both generally not advisable), you will have a pass through entity so the tax on your cut of the profit/loss will be calculated on your personal 1040 tax return.  

Basically I just want to be able to have walk away money of what we are paying in case of a total loss along with only having claims that would be above the $10,000 threshold and above.

It is always better to keep a tenant than to try to evict one - unless of course you are losing so much money that the vacancy loss is better than what you currently are getting - but this does not seem to be the case in your situation. 

I'm no tax guy  but passive 'losses' can only offset earned income if you're a RE professional as far as I know.  

Outside taps are another loss.

I would say only the most experienced investors (talking accredited here that can afford a complete loss) should be in this game and only if their emotional makeup can tolerate it.  

I have seen on this website answers both ways regarding this (the site administrator saying leave it in Sch A, and his colleague (also a enrolled agent) advising that it can be written off in Sch E, but that there are certain restrictions mainly -- you must have passive activity gains where the deductions are covered (no passive activity loss carry over allowed. 

There must be a reason though, cost, weight, etc.