If the taxpayer does not materially participate in the activity that is producing the passive losses, then those losses can only be declared against passive income.

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.

After several weeks, the loan was denied for rentals and I objected saying that they were clearly declared in the application and if that was an issue, the loan should have been denied IMMEDIATELY, not three weeks later!

HOA is refusing to help out with any of the repairs as it states in the condo declaration "the association shall not be liable for damage to property caused by the elements or resulting from water which may leak or flow from outside or from any parts of the building except to the extent of any insurance proceeds available"In my eyes this is clearly their fault due to negligence, poor installation, poor maintenance and inspection of the building and they should be paying for all of the repairs to my unit or at least some of it.Are they exempt from liability in this situation due to what is stated in the declaration?

If you act like an owner, paying for maintenance, you have a problem if you go to court.Here are some pointers to avoid a re-characterization of a lease w option to buy being declared a "disguised installment sale"Here’s what the IRS looks for in determining whether there has been a sale:(1) Whether the amount of and right to the purchase price is fixed and unqualified;(2) Whether the obligation to convey title on final payment of the purchase price is absolute;(3) Whether the vendee has taken possession or has the legal right to possession;(4) Whether the vendee has otherwise assumed the benefits and burdens of ownership.

The 21 day time clock however started when the landlord got possession, either by declaring abandonment which take several weeks or going to court to get possession which can take months or just picking up the keys and documenting a defacto tenant move out/ abandonment.So yes, the landlord was obligated to mail you a security deposit accounting to your last known address by the end of the 21st day. 

If you do hire an inspector and he says there is black mold then you would have to disclose it to any future purchasers and the property may be declared uninhabitable.  

Look at it this way, If you bought a bought a billion dollar property and didn't sell it before year end would it make sense for you to declare a billion dollar lose this year?

If you did this for a whole month straight, you'd know exactly what to say to a money man investor once you found the deal of a lifetime because you've got analyzing the deal in your muscle memory! 

Also, do not declare principle payments on taxable income; big mistake.If you want that property to work, you have to find a way to increase rents significantly.