I made some elections about grouping by not grouping as I expanded and didn't understand the consequences (making material participation easier/when passive losses can be harvested/ease of filing) of that at the time.Also random question but do you have a sister Nicole?

Please keep in mind, you may qualify for the 750 hour test for real estate professionals, but need to materially participate in the rental activities as well for it to be considered active (and take the active losses). 

The alternative is moving to somewhere cheaper or find a higher paying job.

But, it's not a no-brainer better alternative to renting. 

Alternative plan would be to use a  3% down conventional loan. 

Deductions would be the original deposit I had put into the property, material and labor, and all other deductions such as utilities.

Are there private money lenders who do cash out refinancing deals as an alternative?

I am working on my 1st rehab, which also includes purchasing construction material from Home Depot. 

From what I hear on the recent podcast 710 it's a great alternative to short-term rentals but a lot of leg work to get licensed and set up. 

The same goes for a RE club, or Guru materials.