You enrolled in the Pro Group (using a special discount when we made it abundantly clear that it was $99/mo) but didn’t attend, which I understand can happen when life gets busy.

I would think in this type of a property you would need to be prepared to come out of pocket the entire renovation amount. 

I received the following email today.Good Afternoon,Be prepared!

Any recommendations for tax professionals who specialize in Detroit properties?

It took me weeks to prepare.

Depending on the investment and your current knowledge, this can take from 2 to 20 hours of research.2, Spend $400 - $600 for 2 hours consultation with an attorney who specializes in real estate IN THE STATE that the underlying property is located in.3.

Renovated with cosmetic updates for immediate rental income, it offers strong cash flow while preparing for more extensive repairs and the addition of an ADU.

There are some serious housing perks with my new job offer: 1) $150K in a 0% interest forgivable loan for downpayment (10% forgiven each year 2) a special home loan program that is currently lending at an interest rate of 4.1%. 3) Can join a waitlist for on-campus faculty housing that is sold for at 50-75% of the fair market value consequently when you sell you are capped at how much you can sell for; waitlist for these homes is approximately 7-10 years and you can stay there until you die).

I added value to the deal by completing quick cosmetic repairs, allowing the property to be rented immediately and generate cash flow while preparing for ADU construction.

You cannot offset nonpassive income with passive income unless you are REPS or you make less than $150k MAGI because there is a special $25k PAL allowance