You can't imagine how many investors I worked with where they simply left closing costs(title costs, lender fees) out of basis calculation.2) Inform you of any strategies to reduce your tax liability.Most real estate Investors file the following forms(individual Level) just in case you had time to read some instructionsSchedule E - to report your rental incomeForm 4562 - To report/calculate depreciation expense on your tax returnForm 8582 - to report any losses that are suspended if your income is above $100,000

Even if you do your "due diligence", there has to be some rationale, some of which may be completely outside your control (geographic marketplace, loss of industry, etc) that creates a high-cap situation.

I agree, small claim court is your best bet to recover your money.

Otherwise the loss of taxes as a W2 employee would likely be much higher than the taxes gained on home ownership (which I think is just mortgage interest). 

Most auto policies include a defense obligation that means If there is a possibility that the auto policy covers the loss, the insurer is likely obligated to hire a lawyer to defend your friend against any suit, and/or settle it within the policy limits.

I think that they are the scammers , I was literally gone for 2 days , the next door neighbor saw them but didn't saw anything they did tell me it was 4am tho , so I know they are the scammers, I have a permit for some electrical work so other than cutting the power I'm a loss , I think I'm just going to show up with the police at 7am and cut the power and go from there

Similar to when a football coach tells his players to "remember this feeling" after a big loss so they can assure it won't happen again, remember the feeling of having to pay rent and be sure that in your (hopefully near) future you can transition to the other side of things as a landlord and escape the tenant life.I think for now you need a serious look at your situation.

I don't use LLC anymore - if you are concerned about protecting yourself from liability loss - get enough insurancetreat your tenants like customerspay attention to the condition of the unitsalways select the best tenantsBe kind and personable with you tenantsprovide great service and communicationpay attention to the exterior of the propertykeep the grounds cleanact as a professional - be kind to your customers (tenants) have some empathy for your tenants with they have a problem paying rent.work with your tenants

If they even try to attempt to recover anything through a court of law in Paraguay, good luck to them!

I like the way you put it all into perspective-- for every opportunity in this economy, there is someone else who has taken a loss.