Here are the stats:Purchase Price: $40,000 - Appraisal: $34,000 - Down Payment: $12,800Current Rent: $600 & $475 = Total of $1075/moVacancy Factor: 1 month ea unit (-$90/mo)Mortgage: $180/mo (Only $27,200 based on appraisal)Property Taxes: $65/mo ($800/yr)Management: $65/mo (6%)Gas & Electric: $0 (Tenants Pay)Insurance:  $55/moWater/Sewer: $70/moMaintenance: $80/moReplacement Costs: $105/moTOTAL INCOME: $985  TOTAL EXPENSES: $620  CASH FLOW: $365/moClosing Costs: $700Return on Investment $365 x 12 / $12,800 + $700 = 32.4% ROIInstant Net Worth Loss of $6,000The appraisal is fairly low as there are a lot of cheaper single family houses in the area and this is technically only a 2 bedroom house.

Not able to pay for it due to job loss? 

Sorry for your loss. 

The second layer of issues is when the promoter offers to step back in to help with loss mitigation then there is a reliance on the promoter from the investor.  

Is there a strategy to ensuring capital gains (or at least managing risk), rather than losses?

Whats implication for capital  and loss tax ?

If the property is to be occupied you need to address a final walk through, accepting normal wear and tear, under a sale contract.Other issues, insurance assignment in the event of a loss you can elect to perform or avoid the contract.

So you've got ordinary income through the LLC, but a capital loss or gain on the personal side.  

I've spend a tremendous amount of time reading articles, attending webinars and talking to people, but I'm still at a loss where to start.. 

Our contract says that we will take reasonable measures to secure a property when we leave - lock doors, windows, and other openings.... but that we cannot be held accountable for loss incurred while our agents are not on site.In iffy neighborhoods, we take tools home with us every night.The way I feel about it is that it's not my fault the owner bought a house in the kind of neighborhood where it may be broken into, and I can't be held responsible for things that happen to the house while I'm not there as long as I'm taking a reasonable measure of care to prevent break-ins.