Do you then sell for a loss or do you turn it into a rental?   

A good tool to have in the back of your tool bag, but not a feasible primary strategy for me I have found.  

This lends to going down the path of possibly providing the tenants with financing, installment contract, disguised sales, delayed closing transaction, equitable interest, refunds, lawsuits, loss of profits... etc.

Are you saying that you have RE net losses of $10,000 per year?

While it may seem unfair, many business are not allowed to depreciate capital expenses at all, rather gains/losses are figured at sale.

This lends to going down the path of possibly providing the tenants with financing, installment contract, disguised sales, delayed closing transaction, equitable interest, refunds, lawsuits, loss of profits... etc.

You still get the net loss carryover right?

This lends to going down the path of possibly providing the tenants with financing, installment contract, disguised sales, delayed closing transaction, equitable interest, refunds, lawsuits, loss of profits... etc.

Appreciation is not something to be ignored and just because it includes ALL profits and losses, even the ones you don't like or can't control, is no valid reason to not use IRR IMO ... just because you can't control it does not mean that it isn't important and should be ignored.

(according to him anyway... unless you know another city engineer I need to be talking to) We are working on feasibility for now and we have a still valid pier permit since before Ike we would like to build.