Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

The process from start to finish would take four months and cost ~200k to build, with comps in the area around 355k-lender man said, refinancing would take six months as most lenders wont refinance a property unless its been built for six months, affecting the strategy to get paid out from refinancing quicker and closing out on construction loan-The property would not appraise at comps value, but at the cost it took to build, affecting getting paid out from the refinance.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

The first is that there's no consensus between tax professionals, and the second is that you will not like my personal interpretation.My interpretation is:Until the property is "placed in service" - everything goes into basis.Illustration.You buy a property July 1st.You finish rehab November 1st and put the property on the market.Your tenant moves in January 15th.The property was placed in service November 1st, and it does not matter that the tenant did not move in until the next year.Everything paid between July 1st and November 1st, including interest and utilities, goes into basis.

The lot is paid off and deeded to our LLC, but lender will not do conventional loan to LLC for the remaining financing so we'd need to take out a loan in our personal names. 

Best, but expensive and can still be defeated.5) Cameras & alarms - sorry, we're not paid enough to confront a thief in the middle of the night!

i fyour getting paid off when the vertical loan goes on.. then your in first position . so not sure what the issue is? 

As you develop the park I would strongly recommend your homes be individually metered for water, sewer expense prorated and garbage paid by tenants via individual can service. 

However, my mother has fully paid for the property, making her the rightful owner in practical terms.

However, the property’s cost basis (what they originally paid) carries over to you, meaning if you later sell, you may owe significant capital gains tax on appreciation.Alternatively, selling the property at fair market value eliminates gift tax concerns, but your in-laws may owe capital gains tax on any profit.