I think you forgot to include the question.

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

I am currently trying to break my analysis paralysis. 

The best deal I can find today is one that you buy cash, invest a rehab and when you pull out 75% of your ARV you leave maybe a small amount of money in the deal and you break even (BEFORE DISCOUNTING FOR VACANCY, REPAIRS, etc) Yes that means you leave like 10-25k in the deal and your payment becomes $3000/m and your rent is $3000 a month or slightly less.This is for my local market and for Class B or higher RE. 

The deal sounded good at the beginning but thought it included his fee and it didn't so he's tacking on his 20% on every bill. 

In total, including money lost from rent, legal fees, and repairs, the situation cost almost $30k.

You can break it out by general RE activities and material participation.

So, there is even more risk.The things that you can do, include being properly capitalized, not be greedy, (in whichever way that may be defined in the county you are buying), know solicitation laws, know Dodd-Frank, the Consumer Protection Act, the S.A.F.E.

We are in 11 markets, including Huntsville and would be happy to set up a call to talk over some options. 

I would strongly encourage you to buy properties that cash flow or break even.