You have more control over the timing.   

I don't believe you can omit the payment on this one unless the person making the payments is on the current mortgage.

No kidding this is as simple as it gets.. just advertise that you accept shorter term leases and riase your price.. we have been doing it in Vegas for years..

This will give you some info so they are not guessing on what will be needed (they probably already know rough numbers, but each project is different).

Others have hit it on the head.

I am thinking construction loan, but how to pay for it while the construction is going on is a different story.   

My best guess is their failure rate is more than 98%.The truth is not as “convenient”.

Being able to use real estate to offset taxable income requires some sort of participation on his end.If he wants you to be the boots on the ground, it will likely be hard for him to reduce his taxable income.

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

Lots of competition for tenants at this moment, which has been dropping rents down, rent concessions etc.Good luck on your journey!