Basically you get rid of your operating deductions and file on a Schedule C vs Schedule E.Here is an excerpt from an IRS document - https://www.irs.gov/publicatio...Schedule C (Form 1040), Profit or Loss From BusinessGenerally, Schedule C is used when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer.Providing substantial services.If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C.

Give the neighbor a written warning threatening to sue her for losses if she continues to affect your rental/income.

You would have to prove loss that was not mitigated by the sale and loss of rent.

I don't know where 350/month rent gets any tenants where you won't be having rent loss issues.

Hopefully the IRR approaches 20%, but it could result in loss of investment.real estate: historically low risk for long hold.  

Same answer as before, as long as we classify it as a business, we shouldn't be concerned about losses - because it will off set the other income.

Not only that but you can automatically screen tenants with an application and credit and background checks, collect rent through the app that will automatically be deposited into your account, automate late fees, itll send emails to your tenants when their lease needs to be renewed or when there rent is due soon/late, it'll automatically generate profit and loss statements and tax documents and more!

As the market levels off or declines we could see steep losses for some bidders. 

Make sure you also work with a tax professional to ensure you'll be able to utilize those passive losses- And that the cost benefit makes sense. 

When we run our number to determine profit and loss over 5 years we always assume an increase in taxes along with other operating expenses, which then drives how much income (rent) we need out of the property to make our numbers.