First, I suppose that these losses can be carried forward but how are they eventually taken? 

This is looking to be a more complex lending situation due to lack of relationships established, but I have to start somewhere i suppose.

It was suppose to be a 6 days rehab, and the contractor has done almost nothing to the property (beside painting the exterior of the house).

I suppose that's a bit of a rant- a tamed down rant, but still a rant.

I dont suppose you'll need to deal with the City but if you do feel free to reach out with any questions on their process. 

You are supposed to estimate what you might end up owing the IRS when your taxes are finally done and make this payment on April 15th, preferably here on the IRS website.

I listened to a lot of advice from people on BP and other investors to "acquire doors and cash flow" and I've been losing money on what was supposed to cash flow from my Class C Indianapolis rentals.  

What they do differently is find off-market deals through various lead sources they created over time, and they're supposed to send them your way according to your criteria.As you continue to work with them, you'll build a relationship with them, and they'll send you these leads before everyone else.

On paper it was supposed to cash flow.

Good luck with the project.It supposedly has a very high 'pigment count', seems really good.