Unless you qualify as a Real Estate Professional (which has strict requirements), your rental losses can only offset passive income.

First - Have a discussion if the rental loss will immediately help your tax situation. 

So accepting and approving multiple applicants is the norm?

The losses would have spiraled out of control for me had I not been able to sell my second house immediately.I don't look back on my experience with any regrets since I know the risks we take playing this game. 

Once a complete loss mitigation application is received, the servicer must review that application before starting the foreclosure process.""

I'm curious to hear how other property managers and landlords are navigating this.Here in College Station, TX, I don't accept Section 8 applicants.

Let the tenant vacate, and you have one month to find a replacement before you incur any losses.

I’m considering a 20-unit multifamily property listed at $1.6M, but the seller has indicated they’re willing to accept $1.25M.

I just can't accept such a constant ever increasing loss, even if I can afford it. 

When I have a situation like this, I give them a written notice to accept the property in its current condition or get out.