He was shocked that I'm not reducing my tax burden each year by maximizing my losses.

It's a good thing for the public these contracts have come under various new regulations to curb the predatory types.Option contracts are under some new changes as well, not understanding these contracts can cause a taxation nightmare, mess over a seller and as you asked, the results can be harsh, especially on the operator who got a seller in a financial loss. 

If you are accumulating unused tax losses (passive or active) they will eventually come back to you in the form of a net operation loss carryforward on a subsequent year taxes, or when you sell the property.

Straight rent, you'll see drugs and alcohol and job loss ALL THE TIME.  

However, if you take a participant solo 401k loan you may invest those funds in your own business or in real estate that you can treat as your self-employed business provided you are actively managing and/or improving the properties.Lastly, when making annual contributions to a solo 401k, the calculation must be based on aggregate self-employment earnings form all self-employment activity not just from one business; therefore, even if you have net-income from one business but a net loss from another, you may not have any net-income to make an  annual solo 401k contribution.

Woman with four kids, thenmoves a man (not on the lease) into the garagepicks a fight with another tenantthen calls CPS(Child Protective Services) re the other tenant.cause loss of a third tenantSolution was cash for keys - - OH THE JOY of rentals.

If I need to sell, I'll incur the typical closing costs which would essentially make the deal a loss even if I could sell for the what I paid.  

We have them and we are proud of what we have :)If you happened to watch the Monday night Football game you would have seen something, I think no one has ever see before, is watching the Cleveland Browns have a blocked field goal, with a return to the house by Baltimore (the former Cleveland Browns) for a loss with 0.00 seconds to play, this was not notable in-fact embracing. 

Chances are that in the case of a total loss, you'd probably look to purchase another investment first instead of rebuilding anew. 

And if the seller refuses to provide the prorated rent, your only realistic option is to terminate the contract.If the deal is a good one, you should just chalk up the loss to the cost of getting a short sale.