The excess depreciation that you did not use to offset income also adds to your tax loss.

We will likely take a loss of a few weeks or even a month of rent, but will get more candidates.

I have an LLC and it's a pass through entity - income or losses pass through to my personal tax return.

Tenants to pay all utilities.Estimated Taxes: $1,850/yr (on high end; could be closer to $1,400 on low end)Estimated Insurance: $700/yr Taxes + Insurance = $212.50/moOther ExpensesProperty Management (@10% only when rented): $130/mo-vacancy = $112/moVacancy Loss (@ 13.90%): $2,168/yr = $181/moThis is extremely high and could be unlikely, but according to a website I use for information on the area, it says this is the average for this area because of seasonality.

That is your warranty that if the market turns south, or if you paid too much, you can wait it out and not have to take a loss on your property.

If you have not set up a monthly budget for personal things like bills, clothing, food, gas, play money to use on dining out and movies etc.

Food for thought.

Instead of taking a like $30K loss we rented it out for a modest cashflow.

Food for thought.

Your option or lease can't have rights to act as an owner, getting building permits, hiring contractors for repairs, insurance loss issues, evictions are more complicated, it really requires an owner who will assist if needed.