Usually, if you qualify you could get up to 75% of the value post construction for funding to do the project but in stages.So there won't always per se be a hard downpayment.

. $800.00)   (note this would be less than ordinary income paid otherwise, plus 50% of SE tax is a deduction.)• $4,200 contributed to solo traditional 401, then converted to Roth. 

:) Kristen  also keep in mind  ( I have used cost seg personally as well ) that you dont make those dollars per se you lower your tax burden but if you do sell you have to recapture that.. so its not like earned income that never gets taxed etc.. of course if you keep for ever and give the asset to your kids with stepped up basis that does make that saving pretty much earned..

I will be hands on and am seeking an active qualification to capture the offset to other W2 and SE income.  

If business, then ordinary rates + SE tax, even if longer than 1 year.Step 2: If capital investment, then more then 1 year or less than 1 year?

IRC Sec 1402 and the related Treasury regs govern income subject to SE taxes.(3) No such thing as "active" income in the context of IRC Sec 1402 and 469.Again, most Airbnb and VRBO belong on Sch E and are not subject to SE taxes. 

Don, to me I always like to say if your getting into the business as a business owner not an investor per se.. its a lifestyle and unless you and your family can embrace this lifestyle most folks don't get very far..

Would you rather invest in Lynchburg, Suffolk, Newport News, Virginia Beach, Norfolk, or Chesapeake? Why? Are there any that you would never touch?

On the buying side, there are not really "re agents" per se in most commercial deals.  

I have an old house on an exceptional lot (great street and mountain views, larger lot for area) in an area of SE Denver in which new houses can sell for more than 3M.