The Seller has declared Chapter 13 bankruptcy and the property has 24 liens on the title.

If you have business you’re conducting in your own name with income you’re declaring then you can deduct the necessary expenses to make that income.

If you push too hard they might declare bankruptcy for example and you get nothing or next to nothing.

They still need to give you the signed declarations to be covered under the eviction ban.

I'm pleased to report that we successfully challenged and won an eviction against a CDC declaration. 

Keep in mind that his business declared bankruptcy earlier this year.......

Have you declared the income on your taxes yet?

But will it be a red flag for the IRS (audit) if I declare a business loss without showing any rental income?

That is unless you declare bankruptcy which will ruin your credit.Yes your cash investment is at risk, but with no loan on the property, there's no risk of another market crash wiping out all of your equity and forcing you to either bring additional money to the table or hold the property and wait.

Yes, but you would have to declare it an investment property, not your primary residence.