Well I do know the banks are not really paying loss mit fees anymore so I guess you have to find someone to pay them.

You step in, improve the property, cure the loss to lease problems and make money on the spread.

Your local knowledge and resources should provide an opportunity to disposition said asset that reduces the expenses and time to recover or collect.Understand also, that banks are not the only holders of loans.

I wants to address 2 major concerns. 1) Liability protection 2) Tax Savings both are important.Issue #1: Eligibility for S Corporation Treatment: I have been told that Loss of eligibility can occur if the S corporation receives too much passive income. so in my case I am creating rental leases on my S-Corp name and not on my personal name. is that OK or my S-Corp is in trouble?

Sorry for your loss ,But lots of people spend their own money and end up with negative cash flow .

LLC or not, you must have adequate insurance protection.However, to nit pick a bit, none of this with PREVENT you from getting sued, they will, rather, protect you from personal loss if you do get sued.

Right now, for 2022 I am at a loss.

If so, will it recover by spring?

I've noticed a steady increase in most Washington & Oregon state MFs to the point where these properties don't even come close to meeting the 1% rule & would actually be breaking even or taking a loss if purchased.Are there any other cities/counties in the PNW (or elsewhere) where there's still some prospects for healthy cash flow?

Therefore, the policy that was in place in the spring (at the time of this loss) would be the policy to review as John stated above, and the one to respond in this situation.