I might do a deal where I purchased the property and provided the “buyer” worth an option to buy for the period of the loan with monthly rent” payments equal to the interest payments on the would be note.  

However, just about all of them had periods where they lost a ton of money, almost always because of a bad tenant.

So I’ve had this happen twice in a relatively short period of time and I’m a bit confused about it.The first time it stood out I went and looked at a property and I told the wholesaler I could only give X and they guilt trip me saying they only was making 5k as it was.So we did an assignment of contract and I agree that they needed to make something and it was a marginal deal for both parties.

It's a good practice to reconcile your book balance with the amortization schedule balance periodically to make sure they're in sync. 

So a 20 day waiting period before the eviction process can start.  

Unsuccessful Property Search: Hours spent on unsuccessful property searches, where no purchase is made, do not qualify.On-Call Periods: Instances where you are on-call but do not actively perform work do not count towards material participation.Meeting Requirements:Maintain Detailed Records: Keep accurate time logs and records documenting your involvement in material participation activities, supported by evidence such as emails and calendar appointments.Seek Professional Guidance: Collaborate with a qualified tax professional to ensure compliance with IRS regulations and to optimize your material participation strategy.I hope this high-level overview gives you insight into what activities matter and ones that do not.

Plumbing/electrical, etc. is not for the faint of heart and only make sense to me if you are looking a buying and holding for an extended period of time.

Salt Lake (also Zions) Navy Federal 80% LTV LONG draw period of 20 years, and 20 year repaymentNevada State Bank, in first positionNorway Savings Bank, MaineOmaha MortgageOne Nevada Credit UnionOregonians CU - ORPenFed - StoppedPeoples Bank of NCPioneer Bank, MNPNC Bank on primary and secondary (2nd homes) must be in personal name and 50% DTI is required.PSECU up to 80% Quorum Federal Credit Union 80% LTV, owned by LLC is OK.

Can he deduct the mortgage interest that is unallocated to the rental period, on his schedule A? 

If the market softens at the 5-year mark, we can opt to hold the asset for a longer period of time, allowing the market to rebound.Projected Cash-on-Cash Returns: 6% Per YearNext, consider cash-on-cash returns, otherwise known as cash flow or passive income.