Your legal fees would be recompensed in the pay out and you will have avoided paying a deductible and adding claim history to your personal loss summary.

Personally, I would want to have enough skin in the game (equity) so if I needed to unload it, I wouldn't suffer a loss; but that's just me.

Then theirs the security deposit itemization and settlement letters for the past person.  

Your cap gains/loss disregards the depreciation when you sell, since it's recaptured at 25% separately, so you're calculating the loss gain off the$155k, plus capital improvements.  

Items to be aware of include state income tax, property tax, insurance cost and landlord favorable regulations.

It's my experience if a tenant howls loud and long enough and they were reasonable good tenants, we would let items go that might be difficult to prove like switch plate, light bulbs, burner pans (surprised they're charging for that as they almost always have burn marks).One thing that stands out is they did not make the proper effort to repair the roof. 

If he is paying the mortgage, the bank has no incentive to take a loss.  

The only way to unload was to take a loss.  

Right now none seems ideal, so I'm trying to figure it what would minimize losses.

Right now none seems ideal, so I'm trying to figure it what would minimize losses.