Up until recently it would have been illegal as it would violate the 1934, as governed by the US Securities Exchange Commission (SEC) and adopted by almost every state in America under what are called "Blue Sky" laws.  

But there are massive federal rebates which are included in the ownership models but aren't available to us investors unless we can work a very intimate deal with a tenant having them share a portion of their tax refund with us. 

Also, look into Landlord Tenant laws for Seattle or you will find your self doing something stupid like buying the property, unless you are into heavy handed government and unruly tenants.

(emphasis mine) The arbitration shall comply with and be governed by the Commercial Rules of the American Arbitration Association.

Now I can potentially see why I got no response for days, I've tried to speak with several CPA accountants and they either: a) said something which tells me they have no idea about it and I'd be paying for them to research or,b) paraphrase...that is a dumb, stupid idea drummed up by people looking to hit you with fees, I would not take on a client who tries to do that (SDIRA) I know Maine as a state is not the most progressive but either hundreds of people on this site are in the scamming business, or the folks I have spoken to have their head in the sand....geez, if I could find just one he/she might be able to carve out a specialized practice for themselvesI get that the primary tax laws are federal so I could go out of state...maybe that is the play but if possible I would like someone close by for thoughts, advice, and convenience (not just for Sdira).  

Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution lawfully doing business in this State or the landlord may, at his option, furnish a bond from an insurance company licensed to do business in North Carolina.

I was thinking of transferring the property into an LLC, stop paying the taxes on it, let it go to the County tax sale, and then, [hopefully] take a tax loss on it.My question is, would I be able to count this as a long term capital loss on my federal income taxes?

Call it karma, or common decency or whatever...I believe if more businesses did the right thing regardless of strict legal definition, there would be a lot less legal and government to deal with.

Not to mention that it violates federal securities laws.

I invite you to please consider the following, from a Federal Income Tax Filing Perspective.