That's what I mean when I say fraudulent folks coming into this space.This did not materialize as much as I thought and I think it was cause everyone anticipated a rate cut, thus such a fund wouldn't need to be made.

Of course these are also just general rules, construction costs will vary greatly dependent on site conditions and design.Most material costs, insurance costs, permitting, licenisng etc. don't deviate greatly depending on where exactly in the city you build and unfourtnately, most of the in-fill opportunties are in the neighborhoods that can't achieve the required pricing to make the cost of new construction pencil.

Deal Breakdown:•3 structures:•1 already income-producing•2 will generate significantly more after rehab•Purchase Price: $500K•Stage 1 Rehab: $240K (focus on 2 structures)•ARV Projections:•After Stage 1: $1.2M•Long-term potential: $2.2M+•Seller willing to do partial owner carryI’m exploring creative financing options to make this work, but lenders I’ve talked to have mixed responses—some say it’s too rural, others require $100K+ in liquid cash.For investors familiar with STR deals, especially in mountain or semi-rural markets:•How have you structured financing on similar projects?

Has anyone had experience with this in Albuquerque and be open to a call or coffee? 

But since you have already taken bonus depreciation while it was an LTR, this may not even be a concern for you.There're other potential complications such as a different depreciation schedule, treatment of previously suspended losses, and so on.

You will be able to use those disallowed passive losses: -Against other passive income -If this rental has net income in a later year these disallowed losses will offset that income-When you sell a rental those carried over disallowed losses offset the gains on sale Other situations you hear about where people CAN use the rental losses to reduce W2 income are where the rentals qualify to be Non-Passive This typically happens in the following two situations: Real Estate Professional Status- A taxpayer or their spouse spends at least 750 during the year on real estate- and more time on it than anything else.

And this isn't a year 0 evaluation, you're going to need to be looking at this in a 10-year landscape maybe 7 year minimum.

Not that you can ever know this for sure given the fluidity of real estate markets.

A lot of times you cannot view the property.

Btw, @Marcus Auerbach, your OP is one of the BEST posts I’ve read on BP, and I’ve been a member since 2009!