I would also carry the loan and establishing a penalty for early payoff (how much penalty?) 

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

-Carry pepper spray, horn, concealed firearm etc…Hope these help

It would also depend on other factors - such as whether you have a carrying cost (hard money loan) and whether there are next projects that you foresee to close.

Try looking at it a slightly different way with some quick math:$900,000 sales price$22,500 cost of purchase (appraisal, points, lender fees, title fees, etc - 2.5%)$90,000 cost of sale (10% commissions, closing costs, buyer credits)$64,000 carrying costs (6 months at 10%)$25,000 additional carrying costs (6 months taxes, utilities, HOA, misc)$100,000 rehab cost (the number used above)$68,500 profit = $530,000 max allowable offer.Some numbers may be a bit high, others may be a bit low. 

., 17.5 years remaining for residential property).New Schedule: Simultaneously, start a new depreciation schedule for the additional cost basis attributed to the replacement property, following standard timeframes (27.5 years for residential, 39 years for commercial).Option 2: Treat as New AssetCombined Basis: Treat the entire cost basis of the replacement property (carried-over basis + additional funds invested) as if it were a newly acquired asset.Single Schedule: Depreciate the total cost basis over the standard timeframe for the replacement property type (27.5 years for residential or 39 years for commercial).If you choose option #2, you need to file an additional form (4652) with your tax return. 

When is the best time, in your opinion, to start shopping long term financing on as the project carries on? 

@Carrie Matuga Thanks for your insight.

Cash advance is probably the worst one, and the one that will still carry interest.

Do so and you can be seen "being in the business of" which then may carrying financing compliance issues.