If he want's to cut off the hand that feeds him it's his loss. 

Do investors deploy cash into a loss making property to turn it profitable and cash out...ORThey just take the loss and invest the cash elsewhere to profit against that loss?

a correction is occurring right now, big losses the past few weeks.

So your insurance company has $6,000 and it takes some of that money and buys "reinsurance" against excessive loss.

This is my understanding regarding taxes and vacation properties:1) If you rent it out all year long: You can claim tax and mortgage interest deductions, rental cost deductions, and rental loss deductions. 2) If you use it as a vacation home for more than 14 days per year and also rent it out more than 14 days per year: You can claim tax and mortgage interest deductions, you can claim rental cost deduction (but not over rental income amount) and you CANNOT claim rental loss deductions. 3) If you use it as a vacation home for more than 14 days per year and also rent it out for only 14 days or less per year: You can claim tax and mortgage interest deductions, you CANNOT claim rental cost deductions BUT that rental income is not taxed, you CANNOT claim rental loss deductions. 4) If you use it ONLY as vacation home and do not rent it out: You can claim tax and mortgage interest deductions (can only be done if this is your only second home...you can't claim this on unlimited second homes), you would have not rental cost deductions to claim and you would have not rental loss deductions to claim. 

Can I just scrape and recover with a different color?

I actually enjoy the sect 8 arrangement because the tenant is being threatened with loss of their voucher by not paying their portion.

The $25K "cap" (special allowance, really) is for passive losses, not depreciation. 

Bloomberg.com asked real estate website Zillow.com to help us figure out which U.S. markets have been the riskiest over the last 35 years.Our measure of risk: Assuming buyers held on to their homes for five years before selling, what was their chance of suffering a loss?

Your reputation, network, and relationships are more important long term than any personal loss of capital in the short term.