So if potential tenant puts down 10% non-refundable deposit which I feel not enough skin in the game.. your thoughts & comments.

Building wealth doesn't happen without skin in the game and effort.

It builds wealth for them, not you.If you want to make money in real estate, you need skin in the game.

However, my question is about damage that occurred because of natural events, made worse from neglect.

Having multiple properties minimizes downside risk of vacancy, natural disasters, and you don't have all your equity sitting in one place, which is a target for lawsuits.  

It's all a 1231 loss (which is ordinary in nature).E.g.

Each property is different, so it is natural that the terms may need to be tailored specific to a property.

Therefore, any losses from the apartment complex would be passive in nature and would not be able to offset W-2 income -- they can only offset passive income.

Hey @Daniel Watts, Just from an insurance perspective you will need to be prepared to put an individuals name or all of your names as property insureds and the LLC as a co-insured.If the extra payment of capital means you have "more skin in the game" you might want to allow them to not have their name on the insurance or if you have more skin in the game than you get to get the insurance in your name.

Do I pay that down faster or do I save for my next down payment and let that debt drop off naturally.