However, this is highly audited area and you will see some blocks:1) you need to find a right asset first that you  enough depreciation with cost seg. 2) you need to materially participate in that activity.3) your losses might even be limited based other IRS code section. 4) You need to have an audit proof and documentation of real estate professional status.If we are talking about a huge tax bill, I’m pretty sure you would benefit from hiring a good CPA who can cut your tax bill.

And this past year a MASSIVE oak tree needed to be cut down.

He said, looks like a lot of work cutting them down. 

Unless there are local legal reasons I would probably opt for the later as that would cut down on potential confusion between spelling out 2 different ways of handling utilities in the same lease. 

Way back in the 90's in Salt Lake City.The issue and problem with Fire damage properties is . 1- I am sure the city is involved with complete up to code with everything. 2- Most contractors will charge you almost double to deal with the city up to code and    the mess of the fire, water. etc.3-Most the time a engineer needs to access the property and even their report can cost thousands.Do you have it tied down?

With all of these, I will be at 25% of my monthly income getting cut out.

@Delbert Standifer personally I'd structure it so I didn't have to tie up so much money for one deal. $10 or $20k should be plenty.

Plenty of buyers just not many sellers who agree to cut the price due to rehab costs.

We have read that we will need some type of collateral that ties to the property, like a Deed of Trust, in the event that things go south.

Cookie-cutter homes without basements, a feature that not only cut costs but could be built faster.