Also the increase in value over the last few years has put us in a position of $700k+ in equity.

now you may need something like 14% to make up that difference from the loss of principal.  

@Ronin Crimmons20% of 685k is $137k would be your federal tax liability that i see...If you have any other capital losses, you could tax harvest to offset that gain/liability.Are you already an investor? 

Mind you I am not an expert but I did stay at a Holiday Inn last night!

This aesthetic appeal can significantly enhance the overall attractiveness of the property, leaving a lasting impression on potential tenants.Furthermore, investing in granite countertops has the potential to increase rental rates and property value.

Here's my question: Do I qualify for a tax deduction considering the substantial loss on the property? 

Lastly, I own a duplex that I'm finishing the renovation on and am wondering if there's a way to use the equity in our duplex to leverage a brrrr or a buy and hold. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

All of which, I’ve purchased only within the last 4 years.

I was able to get a HELOC last August, which I used for my first investment property.