They can all work at different times, imo.Good luck finding your own method.Rich Awesome insight Rich,This is the same track I've been researching, thanks for the post to reiterate that there are others other there  on this same path:- the balance between cash flow, tax shield from depreciation, and projections to figure out how to net "0," on paper or as close to it as possible- building up the passive activity loss bucket in anticipation of properties or other income producing activities that have income that exceed expenses and depreciation so I can keep the net "0," balance for tax shield purposes- use of entities, revocable and non revocable trusts, and Life insurance to exit life with no estate tax, fund trusts with perpetual income and asset growth by auto/default design to perpetuate indefinitely into future generations

That $30-$50k deposit loss represents an entire years salary.  

@Bill Brandt & NEVER die with a huge carry forward loss !!!

Ride it out, try to enjoy the parties/weddings/etc...And sorry about your loss.

., for example, recent conversions slated are to remove 158,000 square feet of office inventory from the Plaza/Midtown, an area that's become a popular urban address for younger people who are looking for apartments, says Dennis Bradley, principal at B&A Architecture in Kansas City, Mo.The conversion to apartments is occurring after the owner tried for two years to find a single-use office tenant to occupy a 60-year-old office building that is now being converted into 101 apartment units, including eight two-story penthouses.Meanwhile, the losses of office inventory are expected to stir more ground-up office construction and leasing activity in other office buildings, the CoStar Group reports.Source: "Office Today, Apts.

Be sure to have a Loss of Rents provision.4.

You will have some advantage in that your monthly debt service will be lower in Scenario 1 but the time to recover the difference is estimated as follows:Payment SavingsCost to Market ReadyRent loss while making the property market ready: $1000x3=$3000Rental Period to recover additional cost if the rent is $1000/Mo.

Did you get the last 12 month rent roll and profit and loss statements?

As it was stated, one move by the Jeep line and Toledo is done...again...and that's if you consider it not to be done as it is. 10% population loss in one decade - no **** every apartment complex is for sale...lolGood luck to you guys.

High probability of small benefit, very low probability of HUGE loss.