I'm just going to liquidate the properties "as-is" knowing I'll take a major loss.

Most of the articles that I've read assume that capital depreciation is deducted from current year income at 25%, or deferred in the case of someone with too high of an AGI to deduct real estate losses.  

Right after you close on something get an insurance policy that will protect you if there is a loss.  

Alway get an insurance policy right after you close on a new property that will protect if there is a non-natural loss.  

Sorry for your loss. 

After you close, right after, get an insurance policy that will protect you if there is a loss.  

Being that the rents are below market value, and the loss to lease is high for a lot of value add deals, what are you guys targeting for your Cash on Cash return for Year 1?

-- I was simply trying to explain that minor population loss alone (without considering other factors) does not really mean much for a micro-area.

I want to make sure I rack up 750 hours doing real estate this year to get my losses counted against my W2 earnings.

The only thing that saved me was the fact that I still had an airline pilot job and that was supporting all the losses I was incurring with those properties.My suggestion is always make sure whatever you purchase is part of your strategy and will help you achieve your goal.