You should definitely talk to your CPA, which I am not, but...My understanding is that until you actually have a business, meaning a property in services, nothing can be deducted.

He bought the property pre COVID, so his cash flow is definitely going to be different than what mine will be.The question I'm wondering if its a good idea and if the numbers make sense.Purchase Price: $100,000Down payment: $20,000 (20%)Current cashflow: $900Property manager: $90 (10%)His expense for 12 months was only $1,430 (inspections, repairs, management, eviction services). 

@Dave Harlan They have an amazing product but your better off using a mortgage broker with a great reputation for customer service because they offer wholesale pricing advantages to their brokers and the only complaints I've ever heard about them have come from service issues on the retail side.

Meanwhile, your expenses, like debt service, taxes, insurance, and maintenance, continue.

@Mary LopezThere are second tier lenders out there (non-banks) that will do small balance commercial. 

So, a BUYER that needs owner financing...what if they just used "non-traditional financing"?

If you are looking to fix and flip, just make sure you look for a 12 month term, non-dutch interest on the rehab funds (this means you do not pay interest on the rehab money until you use it), no prepayment penalty, and avoid any lenders that escrow your payments at closing.

I've seen you post a few times about 70% max leverage but 75% is widely available, at lease with non-conventional 30Y DSCR loans.  

Unless those items are all satisfied (except for housing violations and some non-monetary liens which follow the property), the department of finance will not allow the deed to pass through to the next stop in the recording process.So even if you wanted to dump a property that was totally upside down with liens to someone who was willing to take it from you, you can't do it.

My background involves social work & non-profit management before getting into real estate.