I can risk assess every individual based on their background, It is screening 101.Thankfully other peoples moral outrage does not interfere with my ability to successfully operate a minimum risk business within the boundaries of the law.Bottom line is laws are never ridged. 

Using co-hosts might help distribute management tasks, but this can complicate your ability to meet the material participation requirements, especially the 100-hour rule.

Philly always had the ability to become a great city; but the people who are elected just hurt the hand that feeds it. 

Without the ability to obtain a loan / financing - the next steps will be harder to accomplish

Receiving rent while starting the rehab doesn't affect the ability to deduct these expenses, but you cannot deduct them all at once.

I haven't been able to secure the SBA funding on my own so I questions his ability to do so.My question is whether or not this is normal. 

Low down payment is a significant part of your criteria, Michael, and it obviously fits your personal needs, wants, financial position, goals….But for myself, for instance, ability to pay a low dp is of absolutely no importance.  

You will also have the ability to refinance the new purchase easily with a delayed purchase refinance (You can price these as a rate and term refinance), if you plan on only refinancing the purchase price + cost of improvements. 

Did you run into any unexpected challenges with the layout or structural elements?

Upon closing on the deal, I plan to also conduct another visit to address the logistical elements of getting everything set up and finalized.