To qualify as an RE Pro you must:1.

Unless you qualify as a Real Estate Professional (which has strict requirements), your rental losses can only offset passive income.

With this loan, do properties have to be "Turn Key" to qualify or can they be used on fixer uppers?

California does not recognize Real Estate Professional (REP) status, but you can still claim it on your federal taxes if you qualify.

Can your wife qualify for REPS in theory?

If it was a community property state you could file them on Schedule E as a Qualified Joint Venture.

On top of that, hiring tribal members for construction or operations could qualify for employment-related tax credits.

Key Details of the 45L Tax Credit:The credit offers up to $2,000 per eligible unit for builders and developers of residential homes that meet specific energy efficiency criteria.To qualify, the units need to meet or exceed certain energy performance levels in comparison to the national model energy code (e.g., the 2006 or 2009 IECC — International Energy Conservation Code).Cost Considerations for a 90-unit or 112-unit Project:The actual cost of qualifying for the 45L tax credit depends on various factors, including:Energy Efficiency Compliance: The primary cost will come from ensuring that each unit meets the required energy efficiency standards, which typically involve energy modeling, certification from third-party energy raters, and potentially upgrading insulation, HVAC systems, windows, and other components of the building to meet the necessary performance levels.Energy Modeling: Typically, you'll need to pay for an energy consultant or engineer to model the building's energy performance and ensure it qualifies for the credit.

My though process in undercutting the bank by 1 % was to possibly attract qualified buyers.

Quote from @Tiarnan Gormley: How will you qualify for loans?