It is a good city, and have lots of potentials, but risk level is very high for people who are starting investing.

At this level, I suggest you employ the services of your CPA and attorney before making a binding offer and since you came in high, IMO, I'd blame them as the excuse saying my CPA aand attorney just said no....hmmm?

James,I am also a member of LU at the $500 level. I

I probably wouldn't do it again to that level... I

:)You seem well poised to do well in real estate.Newbies near me have set up coffee dates, bought me a cup of coffee, and picked my brain for an hour; that is a great way to network on a local level.  I

Yes, you will need to disclose that it has been tested and what the level is in the future when you sell.  

I like to relate now and then to investors on my own level.  I

I have had 30 years of meetings, minutes, staff, all on the special government level.  I

You probably want to have everything planned out up front, but I think you have bigger fish to fry right now: the two biggest challenges you have to tackle  first are finding a deal and finding a contractor.Inventory and supply have been extremely effected by Covid, while buyer activity level is trough the roof, also fueled by extremely low interest rates.

@Darmesh P.Depending on what your income level is like(outside of real estate), having a rental on your 2020 return can help reduce your taxes.However, it can also not change your tax liability.Best of luck