The only time you see it from lenders is when they can cross collateralize against the other assets and the borrower has significant net worth to cover the losses.  

@Ryan Montbleau this is what we do:A bad tenant can lead to thousands of dollars of losses via unpaid rents, legal fees and property damages.

Your rental losses can offset your rental income, but they cannot offset W2 or investment income unless you qualify as a real estate professional or meet specific short term rental rules.

if you have a str, the first conversation should be with an accountant to see if you can treat the property as active instead of passive.If it is active, you will be allowed to offset the rental losses with your income such as wages, interest, dividends, etc.Best of luck!

For STRs that qualify as non-passive, the impact is even bigger because those losses can offset your W-2 or business income.

BTW the $200k taxable income was largely offset by deductible losses. 3.

Problem is they would also have to live here, pay rent, buy food and health care..

Meaning, in order to offset w2 income with STR paper losses, you must fulfill material participation criteria in your STR(s), the least of which would be 100 hours and no less than anyone else.

Second, the investment may have been made anticipating a chance of failure; for example an investment may correctly analyze that it has a 50% chance of a 25% ROI, a 35% chance of a 50% ROI, and a 15% chance of a 50% loss.  

First off, I’m sorry for your losses—and respect the grit to keep moving.