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

Angie, double check with your insurance agent, An additional insured is sometimes limited to the financial indenification for a loss concerning the dwelling, but not liability or additional features to cover the primary insured/property owner.

I also feel the loss of MikeOH, he was one of my regular reads.

After doing the math, how did you justify the HUGE loss in cash flow using an FHA instead of a conventional.

This is where the down payment/payments are used to calculate the gain in any given year.Capital loss, if any, is taken in year of sale.Interest income is ordinary income on Sch B (or sometimes Sch C, depending on what else you have going on).Everything else in here is only confusing the issue.

In other words they cannot force the business to take a loss just to pay you a salary.

With rental properties you can easily have a paper loss for tax purposes while enjoying positive cash flows during the year.

Here's a few things to make sure are included:  FORMATIONMEMBERSHIPCAPITAL ACCOUNTSALLOCATION OF PROFITS, LOSSES AND DISTRIBUTIONSMANAGEMENTTRANSFER AND ASSIGINMENT OF LLC INTERESTSBOOKS AND RECORDSTAXATIONTERMINATION AND DISSOLUTIONAMENDMENTSPM me and I'll connect you with the docs I use. 

I found taking them an unnecessary distraction from my business consuming time I could otherwise use running, building, and managing my investment business.In any transaction, you have to disclose that you are a licensed agent and remain compliant with all the reams of  disclosure paperwork some government bureaucrat created to justify his or her make-work job to create the illusion he or she was protecting the public. 

While insurance might rebuild your property, the bigger issue is the loss of jobs, local businesses, and essential amenities.