Sometimes you just need to cut your losses. 

As of now, I am not too concerned with the loss of economies of scale since my scale is still small and I typically roll up my sleeves and do as much as I can by myself.I appreciate the positive comments, I'm very passionate about not starving to death and that ends up being quite the motivator.

@Charlotte Edwards if there is a total loss, then yes, you can just take a check and not rebuild. 

Also, their grocery bill is astronomical and it should be cut drastically while still eating healthy food. 

I'm at a loss for what the type of commercial property i'm searching for would be called?  

.- RE-experienced/friendly, IRS-enrolled agent, tax professionals do entity  tax preparation and advice consistent with federal tax code and state tax law.Although many of these may have have operated in the others' primary bailiwick, it is far better to have one of each to color within their lines of their specific training and expertise - and all play well together for you.Strong foundation laid - build that business with the rest of the on-scene power teams (realtors, property management teams, et al.) in each investing location.May sound complicated, but when chefs divide the work in the finest restaurants, you get great food.  

My main thought behind doing so was that I could build up a reserve quicker to be able to buy a second property since I can't spend it on personal expenses, but if I do this will that increase my "rental income" and make it harder for me to claim a loss on the property.

Rick Rucker and othersCan you explain how loss(negative) affect rental schedule E.

I'm sure that you understand that vacancy and/or collection loss can be crushing to your returns.  

Due to my adjusted gross income, I am not allowed to deduct my passive activity losses against that income, and I am not otherwise a "real estate professional."