Lock in those losses annually and then when you go to sell, you have offsets for any potential capital gains and UBIT taxes.

Your expenses from renting it out are most likely going to be greater than 300 dollars, so you would be taking a loss, which is obviously not ideal.

They did not put any more rules on it and it was into a stock investing account which makes (and losses) money daily.  

For example; If housing drops 10% on a $100k house you have lost $10k, but that would be a $20k loss on a $200k house.

If so, then you are in the phaseout zone for the net passive loss allowance. 

If one takes a huge loss somewhere else in the country  (heavy in TX or FL for instance) and raises premiums, I have a 2nd one to go to for a quote that I have a relationship with.  

I can almost assure you it will be a loss for your due to the ongoing maintenance cost, not to mention the fact that a tenant will NEVER maintain a pool as it should be so ultimately that expense will fall on you. 

Diversification is a way to protect yourself against Losses.

I'd avoid a monthly loss like the plague, and make sure that the cashflow provides enough profit compared to other opportunities. 

My solution is to sell, take the loss/rip the band-aid off in the next 2 years and consider it my college education.