You can offset the passive losses from one rental against the positive income from another rental.Therefore, you will likely have a net $3,000 loss across all the three rentals which you would carry forward.If your depreciation was more than $3,000, you basically made cash-flow or rental income that was not taxed, which is good.Best of luck

I figured that would need to be a part of the closing to remove that deed of trust prior to new ownership.

This could potentially drive up the price on the subject property. 

Pick one strategy and master the due diligence side of it.Another thing to keep in mind is how much capital you have, and how many properties you want to acquire.

I work in the yachting industry and love being on the water.

I would greatly appreciate your input on this matter.Here is my setupPurchased property under a TrustLLC in FL owns the TrustHolding company LLC in WY owns LLC in FLI purchased the property sub-to, took over the seller's mortgage and I’m working on setting up insurance for the property.I understand I need to keep the seller as additionally insured in my insurance, but the seller no longer has "interest" (ownership) either in the Trust, nor any of the LLCs nor in the Deed nor Settlement Statement.

Is the walkout directly to the backyard or up out of a Bilco door?

And if the yard space was part of the lease I guess it makes sense to reduce the rent a little.

First of all, welcome to BiggerPockets!

Welcome to BP - you've come to the right place for resources on real estate investing!