They will work with the buyer to re-set the loan and terms because when they foreclose and bid the property in for their loan amount which they mostly do around here, they have to recognize the loss as a non performing loan which has a multiplier effect on their lending base.

When your rental produces a loss in excess of income (AGI) you have a passive loss.

Also, do the aggregate losses above any W2 income get carried over to the following year?

The question is—do you have enough weight in your money-raising capacity so the Sponsor would agree to provide you with all that?

If your income is below the $150,000 AGI limit you will be able to use up to $25,000 of the passive losses (if any) to reduce your income and therefore tax. 

Many I work with require a minimum 8 x 8 bordered area on the drawing just for their stamps and have rules on font type, size, drawing scale, information on the title blocks, line types, line weights, etc.

While the first two are great for inspiration, the last one offers much more image control based on what is called ControlNets, which allows control of the composition and weights of an image.

To your questions though, my clients have not experienced the dramatic loss of negotiating ability that you have illustrated.

Alternatively you could use Section 179 expensing here as well, but the expensing can't create a loss for the rental and may be carried forward.

BUT this applies to experienced builders who have a strong track record of successful projects without trailing loss history.