It also depends on if your itemized tax is higher than standard deduction for you to write off your real estate taxes...Bottom line, talk to your CPA on this since this seems more like a tax question than an asset protection question.

So for example, if you prepaid the loan by $50k it just deducts from the back end. 

I don’t know how to keep a relationship with him if I deduct the materials from his completion payout.

Can you opt for high deductible?

Other than deductibles, and of course insurance rate increases, was best possible outcome.

Rental property owners, did you know you can deduct expenses like mortgage interest, property tax, operating expenses, depreciation, and repairs?

Head of household, standard deduction, sub 100k w2 income. 

My wife is a real estate professional (we can deduct real estate depreciation) so a property with significant bonus depreciation would be ideal. 

It can be used as income the year after you collect if filed on tax returns and offers deductions as well to offset monies owed. 

Under the Tax Cuts and Jobs Act of 2017, interest on such loans is typically deductible if used for buying, building, or substantially improving the taxpayer's home that secures the loan.