You will be subject to SE taxed if you do so, but then you can fund retirement. 

If you have suspended losses because expenses exceed rental income and your rental activities are per se passive per IRC 469, then those suspended losses are not lost but merely get carried into future years, whereby they may offset income.

I see you’re in SE Michigan, which is an area I’m familiar with (went to UofM, Go Blue!)

Others don't have seasoning requirements per se, but will lower LTV, raise rates, etc. based on the amount of time that you have held the property, or properties in this case.2.

If you rented the property after rehabbing it, then you would be considered a landlord instead of a dealer and save on SE taxes. 

Rental property is not subject to SE tax, so putting it into an S-Corp to save SE taxes is not necessary. 

without some sort of break down its hard to say.but as others have stated there could be pre paids in there as well which is not a cost of the loan per se.

Maybe what you have most closely resembles a property management company in which the PM company collects rents, pays expenses on behalf of owners out of rents, and then remits net rents with a statement to owners.I don't necessary think that's optimal as you'd have to charge a fair market PM fee and would open yourself up to SE taxes on what sounds like it would otherwise be rental real estate income.You should talk to a CPA/EA that will sit down with you and have the deep conversation about an optimal way to structure things taking into to consideration everyone's facts, circumstances and goals.

Here is the Zillow listing - https://www.zillow.com/homes/12005-Sugar-Mill-Cir-SE-Huntsville,-AL,-35803_rb/190833456_zpid/ What made you interested in investing in this type of deal?

Here is the Zillow listing - https://www.zillow.com/homes/12005-Sugar-Mill-Cir-SE-Huntsville,-AL,-35803_rb/190833456_zpid/ What made you interested in investing in this type of deal?