Based on what you guys have said so far, I see this not as ambiguity, but (it might be) a choice available to me as to when I want to consider the business started up (for tax purposes).

Real estate is an in-efficient market, that's why banks require 25% down - that is deemed a sufficient buffer in case a property has to be liquidated.

Also spell out as much detail as possible in your scope of work with the contractor, you cannot assume that they are thinking the same thing as you when it comes to finishes and material choices.  

Out-of-state investing is a top choice.

They should have clearly communicated to you what work required permits and that they could get those or not but the choice would be yours and that you would bear the cost implications either way.

Still not sure it makes sense, but worth a look.If you want to be green, just buy a green energy plan from your electric provider if you have a choice of providers/plans.

If a private money partner were to get into this type of deal, they'd have no choice but to take over the deal and making every effort to get it cash flowing before it gets to that point.

For cash flow, Cleveland and Dayton are excellent choices, offering cash flow around 10-18%.

I'm sure your hard money bridge lender of choice could also get you juicy 80-90% LTC financing to fund acquisition and value add reno capex costs.

Click on the HCV Homeownership Dashboard on the Housing Choice Voucher (HCV) homeownership program to see how many participants there are in the Austin Housing Authority.