The lease-up costs would include loss rent, rent commissions, and profit for leasing up the building. 

FHA max is 46.99% front ratio for just the property in question and they allow up to 56.99% on the backend which means your entire property expenses + your other expenses (car/cards/other net rental losses/etc) up to 56.99% of the income you have on file.the mention of 50-50.5% is for conventional financing if it even goes .01% above it'll go "ineligible," or fail.

I am with you my friend, the lower level rental marketplace is just not efficient, you get a golden goose here and there, but on a global level, you cannot scale effectively, too much baggage to deal with, resulting in very low returns and very high tenant turnover = loss

The auditor will limit your deductible losses to the $25K.

Get with a CPA on this, you should be in the mindset to keep these properties and have them operate efficiently without taking losses.

We have a leak we cannot find and the extra $150 a month for the loss is getting old.We are going to replace all existing water lines that are owned by the mobile park.

These events are often difficult to predict and can have severe consequences, such as significant losses or market disruptions.

With those kinds of deals that have heavy year 1 bonus depreciation, the "losses" I incur from the K-1's goes directly against my earned income from the house flipping.

I think the weight of the decision is based on what your goals are.

You could be over-leveraged, get hit with a major repair and no cash to pay for it, a vacancy for 2-3 months, or even a bad tenant that causes your life to be miserable while costing you thousands in losses . . . and the market price drops 10% on the property and takes some of your equity.As you gain experience, you can afford to take more risk.