I’d never sell a property for a loss though, eventually it will recover.  

Need advice on how to manage the situation and minimize unnecessary, unfounded maintenance request.

If I made something like this, would anyone else be interested in using this or does this seem unnecessary? 

My insurance pays for "rent loss" for 3 of the 4 units but won't pay for the evicted unit even though I have a new tenant ready to move in (although they haven't sign the lease).

I had expected to pay tax on the gain and the suspended losses would continue to grow until the syndications were sold.Passive losses are suspended until either of the two events happens: you sell/dispose of the investment OR you have passive income to apply these losses against.

If the goal is try to characterize a payment for past services rendered as an "equity investment" that will result in "non-taxable" income to the recipient and a future "tax loss" to the "investor" when the investment ultimately "fails," trust that the IRS has seen through that kind of dodge before and will see through that kind of dodge time and time again.    

It's a lot of paperwork and unnecessary fees especially starting out. 

They couldn't qualify and I burned several year's worth of cash flow on unnecessary improvements.

I am very hands on in all aspects of my RE business and have always done my own taxes…When you started investing in Real Estate, you were not a Real Estate Professional and were subject to passive loss limitations when you were doing your taxes.These Passive Losses have grown and carried forward from year to year.

If its negative, you'll have to have other income to cover that loss.