The initial implications would seem to be significant, given the elimination of deductions, but the long-term effects might negate the initial loss due to the (potential) economic stimulation that it could induce.  

Net passive losses carried forward for this property are added to net passive loss for the year of the sale and are included in the net passive loss allowance and taken as an offset to W2 income on line 17 (1040) even if the suspended losses make the total passive loss exceed the $25K cap on the net passive loss allowance. 

I don't have physical evidence of the actual numbers but my educated guess is that it has a net loss of residents and jobs.It's not that far from Austin; go have a look.

While you do not incur taxes for accessing the funds, you will be replacing the borrowed money with after-tax funds, so there is a loss of tax-deferral on the basis that you borrow.

As a general rule:If your LLC is flipping properties, then S-corp is probably the better choice.If your LLC is a residential rental activity, then partnership is probably best.Both tax treatments pass the net income or net loss through the LLC to the individual members/partners.

Personally, I am not comfortable with having the stress in my life that in an instance another persons stupid mistake could result in the loss of my entire portfolio and potentially jail time if your courts hit the landlord hard enough.

Excessive running of your heater will cause condensation in your home;15.To notify landlord of any problems with air-conditioning or heating systems that are discovered by Tenant;16.To maximize the circulation of air by keeping furniture away from walls and out of corners;17.In addition to the above, Tenant further agrees to perform all responsibilities set forth in the MOLD/MOISTURE DISCLOSURE STATEMENT.TENANT FURTHER AGREES to indemnify and hold harmless Owner and Owner’s management agents from any suits, actions, claims, losses, damages, and expenses (including reasonable attorney’s and court costs) and any liability whatsoever that Owner and/or its management agents may sustain or incur as a result of Tenant’s failure to comply or perform with the obligations set forth above or as the result of intentional or negligent action or failure to act on the part of Tenant or any other person living in, occupying, or using the Premises.

If we can actually recover some of the loss using a debt collection service, that would just be a bonus.

As a lender I do not keep track of what the various big asset holders call their REO loss mitigation departments, complete crap shoot if the person you call will know that HomeSteps is the REO loss mitigation department of Freddie Mac... really no reason for us to know, we don't care who is selling the property.You just need an investor friendly local lender.Now that you're at 4 financed properties and looking at #5, expect your down payment requirements to be bumped 5% from what they otherwise would have been.

This policy will depreciate the materials used in the rehab in the event of a loss meaning you will be given less than you paid.