The two edged sword here is that if you aggregate your properties, and presumably qualify, you’ll be able to deduct passive losses in excess of $25k with income over 150k.The bad news is that you will not be able to deduct any previously qualified (i.e. suspended) losses until you sell the last aggregated property.

Over the years I've made some bad decisions and guess still making em, I.e. investing in stocks, over the board lifestyle, kids going to private schools, big house, expensive cars etc.I just turned 40 and all of sudden I realized that I don't have significant savings, what if something goes wrong and I cannot continue working or suffer a huge loss.I had to set a goal for myself and my goal is to earn atleast $25K/month passive Income in next 4-5 years.

It almost seems like a magnet for bad tenants sometimes when everything is new and perfect.

Not to bad an area especially on certain streets.

You should be able to walk your neighborhood and be able to point out, that home sold for $X but it was in bad condition, that home sold for $Y because some investor bought it 6 months ago for $W and rehabbed it, that home over there was OK condition but could not go FHA due to no appliances and was bought by an investor who has yet to stop by, etc.You get the idea?

I feel bad because me and the seller were motivated to sell, and worked hard at it.

There are plenty of REO's out here but the quality is so bad you couldn't give them a way for free especially if they are wood frame.

My calculations say we might manage to get back $9-12K out of the original investment, along with the new money and the promised interest.OTOH, there's a real chance the whole mess does just linger and now I've thrown good money after bad.

Came across a listed SS (on the market for months already with asking price gradually dropping from 160 to 125).Drove by it and discovered that the property is vacant:The property does not look so bad.

Sherry, I'm sorry but that doesn't even make sense.If the properties are more valuable, there is MORE room for making a profit.And Curt, I have to ask why as well- there's 14 million people in the metro LA area and you're saying it's a bad area?