Note: I am under the impression that me material participating in this exercise will fall under the "Real Property Development or Redevelopment" activity, thereby allowing me to cost segregate the home construction cost.

Some were innocent victims , crime on average people , others were criminals on criminals .  

They consider it fraud and will take action against those who dare to rattle their cage.That being said, IF they approve the tenant and rent you are asking, and the total rent falls within their guidelines and tenant income qualifications, disclosed on the lease you are good to go.BTW, in year #2 of the lease, you can ask for a rent increase, and don't be shy about a raise--at that point, all they can say is "no".

That should fall on the seller either way.

Are they really able to achieve the projections or will they likely fall short?

I occasionally get someone that says, "I know this one guy..." but they can't provide actual details and it's probably just a rumor.Almost all legal disputes are over security deposits and very small amounts.Large suits involve injuries, which are only a risk if the landlord is negligent (e.g. fails to repair a broken step and the tenant falls).Even if the landlord is guilty, the suit will most likely be settled out of court and covered by insurance.Even if it goes to court, insurance will cover the costs.The odds of a landlord losing a lawsuit for more money than the average insurance policy will pay are about the same as winning the lottery or being struck by lightning twice.

My plan is to monitor those rental listings during the fall and winter seasons, and see which units are more consistently booked.

However, one of the golden rules of investing "don't fall in love with your properties" could be enlarged to "don't fall in love with a location/country". the fact that you love a country doesn't make it a great location to invest in real estate, especially if you're an investor.

The adjusted basis would be around $850,000, and selling for $1.2M would leave a $350,000 gain, which falls under the exclusion.

But, it still requires 20% down, which seems to fall within his current issue.I was referring to the private money or hard money being expensive.Let's connect!