(a) A person may acquire an option or an interest in a contract to purchase real property and then sell or offer to sell the option or assign or offer to assign the contract without holding a license issued under this chapter if the person:(1)does not use the option or contract to purchase to engage in real estate brokerage; and(2)discloses the nature of the equitable interest to any potential buyer.

To do this, divide the cost based on the ratio of the fair market value (FMV) of each asset to the total FMV of the entire property at the time of purchase.If you are uncertain about the FMVs of the land and the buildings, you can alternatively allocate the cost based on their assessed values for property tax purposes.Source: IRS Publication 527 (Residential Rental Property)

In any case there is no taxable event yet.As far as your brother is concerned, it again depends on the nature of the transaction. 

It’s designed to capture all relevant details, including hours worked, descriptions of tasks, and the specific nature of the involvement.

Most building codes by nature will not approve a home that small, most have minimum square foot requirements.

And absolutely use an architect on any project that is large in nature. 1) Asking for references is the typical way of vetting a Contractor, but think about it...is a Contr. ever going to give you a bad reference?

., it's always difficult to answer questions of such general nature.

At same time there operations costs are also expanding due to wage inflation naturally fallowing the "everything inflation" so yeah....

It sounds like most of your issues were insurance-related, which indicates this is a risky market based on natural disasters or something.

The only management cost I have is my own time, which outside of natural disasters is 1-2 hours/week at best.