@Lucas SchlundI agree with @Ty Coutts that it depends on your risk tolerance and financial stability. 

I ran into this recent TurboTax article  that led me to believe it was possible: Second, you may have a net operating loss (NOL) if the Section 1231 loss is large enough to reduce your other income below zero.

The point is you have to have a policy that holds true across all tenants and all situations. 

Why wouldn’t you get an umbrella insurance policy instead?

No one has abused the policy as the only residents who've activated it have done so during a period of their own hardship (e.g.

Hi, I have a landlord's policy with Farmers Insurance; the rental property is a single-family. 

100% agree.. especially with syndication once your money is in their account you have zero control.. your not on the checking account your relying on either sponsor prepped financial although some are audited which is better of course..

There is near-zero value add.Your manager failed you because they didn't care to understand the problem or to follow up on the *right* solution.

I called my insurance company to check on their policy and my insurance company said if the pit bull was a service animal that served a documented purpose for a physical condition I had to allow it and they would look past their banned breed list.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.