He was a big help to me and I enjoyed his material.

Building new sounds great, but it's usually way more expensive per square foot when you factor in land, materials, labor, and permits.

As for writing it off on active income, you’d still need to qualify as a REP (or spouse) or have material participation.  

They may have materials.

The huge bonus of this property was it was coming with all existing materials inside including, condensers, lumber, electrical wiring, as well as pex and PVC for the plumbing.

I know you need 750 material hours per year (As well as over 50% of hours in real estate business).

The issue I have and seen being thru several hurricanes in Florida is that once a hurricane passed and there is damage, most contractor's raise their fees as well as materials.

I'm cautious about flips given the materials cost in Hawaii, but trying to manage it from the mainland where I currently live (though i'm considering moving to Hawaii to live in a multi-unit I may own).

1) Will you lose material participation in the cost segregation if your property is in a neighboring state?

Cost TrackerLot Purchase Price 20% - 15%Architect & Engineering Plans RenderingSurvey 1 (Stake Corners & Elevation Cert)Surveyor (Final Elevation Cert & Final Survey)County Permit Municipality Utilities District Portable ToiletFoundationSilt Fence Site Work (tree removal / 8in Dirt Scrape)Concrete SlabFramingLumberEngineering Wood Products (Trusses)Accessories & LumberFraming Labor $2.5 per sqftPlumbingPlumbing TurnkeySinksToiletsFaucets & Shower TrimElectricalElectricalHVACHvacInterior Windows & Material Back DoorFront DoorSiding, Sheathing & Cornice MaterialSiding, Cornice, Doors, Window LaborRoofRoof Deck MaterialRoof Deck LaborStanding Seam Metal Roof (optional)InsulationInsulationDrywallDrywallFirewallHang, Tape, Float & Texture LaborDrywall Touch Up LaborPaintExterior PaintInterior PaintExtra Cost (Caulk & Paint Upgrade)CarpentryDoor Handles CabinetsInterior DoorsBaseboards & Shelving (closets, utilities & Pantry)Carpentry LaborCounter TopsCounter TopsMirrors MirrorsGarageGarage Door & OpenerDrivewayDriveway Flat Work (AC Pad, Walkways, Steps, Backyard Steps)TilingTile MaterialTile LaborLVPLVP MaterialLVP LaborRailingRailingLandscapingLandscape Final gradeSODFlower BedDumpsterDumpsterApplianceseDish WasherStoveMicrowaveMiscMail BoxFinal CleaningHouse Plan PrintsWater & Electric During buildRefunds / DepositsRefundable Deposit