I have not purchased any occupied properties because the risks involved seem too high.

I agree, but Vail is not involved.

Since REPS is determined on a joint return basis, her active involvement and the combined hours can qualify you to offset your 2024 W-2 income with real estate losses, including losses from cost segregation and bonus depreciation on your remaining rentals.

How much involvement are you looking to have?  

You might feel like the effort doesn't justify the cost, but she was involved on the initial showing and that's what demonstrates the agency between you two. 

I was hoping to structure a deal that involves paying the seller every month and then a balloon payment in 5 years (when I can get an 80% LTV cash out refinance to put a mortgage on the property without having to put any money down because I'll have built up at least 20%).

So yes, to answer your question, I’m well prepared for whatever I get myself involved in.

A hybrid approach involves buying early and renting out units, then moving into one.

That definitely helps explain things, but too messy for me to get involved personally.

When making offer based on ARV, is it good practice to have future cash refi lender get involved as early as possible (have their appraiser connected?)