My sister rents a basement apartment in a houseshe only has liability ins on her old carshe has no renter insurancethe home owner lives in the home upstairsher car had an electrical fire and burned to a crisp in the drivewaydamaging the outside of the the landloards garagewho pays?

@Rich Hupper, here is a thread that discusses IRR - even though the thread title is a misnomer:- https://www.biggerpockets.com/forums/311/topics/25...I don't know that "loss to rent" is any specific extra cost that you haven't already allowed for (but @Will Barnard might respond).

As an example, I was selling an 8-unit building and the building burned down while it was being sold.

My name is Alvin Aquino,I am residential real estate investor, I tried working hard to know all what i need to avoid mistakes, being very extra careful, by doing my due diligence, planning ahead, as a result of this endeavor, I felt i wanted to full proof investment due to economic situation, so we diversified into commercial retail business with the family.I currently own a townhouse, a rental property that pays the mortgage on my current home in full, and I decided to built another single detached  house close to the church which the family really like, the condition to the lender is to sale my current home, but now we decided not to sale instead rent it out.I am seeking advice and direction on which financial institution to go or a way not to sale my current house instead have it rented to create cash flow and appreciation of the house.

Tax write-off blah blah is a lot of gobbledygoop that should not really be your reason for investing - especially when other properties might be able to be bought that result in such good returns that you shouldn't mind paying EXTRA Taxes!

Hello everyone I'm an audio tech from NY my wife is a middle school teacherWe are looking to invest in real estate  in order to secure some savings for our two kids and maybe even provide extra income for ourselves as well. 

If you fix a light socket wrong and the house burns down you might be held liable, but if you hire an electrician they could go after LLC but not you personally This is why I use multiple LLCs and own little in my own name.  

She decides to move out and break her lease so she pays an extra months rent to get out of it and is told to leave by Aug 31st at noon because they had rented it out to someone else.

If it isn't visible, I'm saving that extra money and applying asphalt!

There is no extra debt and no interest payments.Live in the home and continue to enjoy its appreciation.