-  If so, then that total (for example...monthly debt service is $2,000 and you underwrite at holding for 6 months, then you factor in that you have a total of $12,000 cash that you will be putting into the deal over that 6 month holding period) counts towards your "costs" or "cash into the deal" that you need to factor in, correct?           

YOUR POST IS CORRECT

Hi! I have been wholesaling and flipping properties for a while now out of an LLC taxed as an S-Corp. However, I am in escrow to buy a home, but my plan with this one is to rehab and turn it into a midterm rental as m...

If you poke around you will see many of the same folks hitting the same posts in waves. 

In my case, for instance, even though I'm the top contributor to the tax forum, I have learned a ton from my fellow tax experts who replied to questions that I did not know answers to and even corrected me on multiple occasions.

Your previous comment is also correct with respect to active / passive.

The reason being you are correct, many times the borrower is not qualified for the loan, so my response to that is why do I want to give a loan to a borrower who does not have the ability to repay.

You are correct hotel underwriting typically has vacancy built in for cosmetic updates but in this case it appears your improvements far exceed keeping the hotel rooms updated. 

We did confirm the zip code and section 8 rent, it is correct. 

Hopefully the questions are worded correctly, I have just been thinking about this over the past few days and figured someone might have some insight.