If it works out you'll increase your cash on cash returns, if it doesn't you can soften the blow of losses by offsetting some of your taxable income from the LA asset that is likely to have greater appreciation upside. 

At least not without some sort of major technology breakthrough with regard to CO2.I think you may see job losses slow down or stop in coal country, but even if coal output remains the same, the industry continues to innovate and needs significantly fewer employees . 

In other words, if I am technically operating at a loss because I am spending most of my money on mortgage and taxes, can I deduct this expense and thus be better off in the long run?

So sorry for your loss.

This is because North Carolina requires landlords to take reasonable steps to keep their losses to a minimum—or to “mitigate damages” in legal terms."

The loss of a parent is tough.  

It seems the current owner, who inherited the property and seems to know less about valuation than this aspiring investor, has been operating at a net loss.

(or possibly more IMPORTANTLY Potential LOSS in other "investments"?)

I frame new construction homes and after listening to the podcast I thought hey maybe I'll qualify and then be able to run a cost segregation study on one if not both of the properties and then take that deprecation/loss against my 1099 income.

"find a way to show a loss on your money."