Every few decades, I will be foreclosing on a bunch of properties, and potentially taking a big loss in a few cases.

We're finally seeing some of the incomplete developments being back-filled, yet dilapidated suburbs and subdivisions are found in areas where economic development slowed and later stopped leaving job loss and abandoned homes in its wake.

Any office that doesn't have this information goes for cost of equipment, which is basically probably a loss to the owner.

Covers the building, $1M/$2M commercial general liability and loss of income.It does not have some of the bells and whistles that an STR specialty policy like Proper has, like coverage for liquor and off-premise liability. 

The first year we got losses on our taxes which we anticipated.

You must work at least 750 hours per year in a qualified RE business.So most people who have high-earning W-2 jobs outside of real estate won't qualify.But the unique thing about RE pro status is that even if you don’t qualify but your spouse does, you can both file jointly and claim the losses from your RE investments to offset your other active income together.It's an incredibly powerful benefit if you do meet the criteria.

The cost segregation study generated $80k in passive losses, meaning a portion of that would be recaptured as ordinary income (at a 25% federal rate).

Also loss history can play a significant role. 

So that first year may be a 2 to 3k loss or break even unless he gets lucky. 

Therefore, if the housing market has stagnated or the rental market is in decline, it may be wise to cut your losses and sell the property.