Doing a 203k on a multi can be challenging, depending on tenants so your best bet is to get one vacant, but then you are at a full loss while construction is going on.

Passive Activity Loss RulesIf you are a real estate investor that doesn’t qualify for REPS status (discussed in #5 below), understanding the Passive Activity Loss rules is crucial.

Real estate/passive investments are already preferential when it comes to taxes since they usually show a loss on paper and the income is not subject to SE tax.  

The appreciation is probably worth more than the cash flow loss, which I am okay with at this point, but it does hurt to see it bleed.

For example:  Reviews are weighted the most by the algorithm. 

I ask because it seems like you have two clear choices - Either finish the rehab and sell potentially at a loss, or hold the property while renting it out so you can hopefully benefit from gradual appreciation and using the rent to help make any principle paydowns on any loans you may have. 

Since IB has gotten so many positive remarks here, I may reconsider it, since it is weighted very high by the algorithm. 

I'm mainly trying to just figure out if the year 1-5 loss of around $38,000 is still worth it in the long run with the sale price covering that loss plus about $250,000.

from my perspective C can be 50 50 for out of stand landlord   as in 50% chance of a decent outcome over timeD class for out of state I think is 80 to 90% of folks that try this will lose money and end up exiting as a loss sometimes a huge loss

Sellers who purchased homes during the market peak may find themselves in difficult positions, as they could potentially have to sell at a loss or contribute additional funds to close a deal.4.