Quote from @Rud Sev: A quick follow up that I have (I understand things can really quickly become complicated): if there is cash flow, and that cash flow is larger than any depreciation (assume no cost segregation), K-1 reports a gain, is this gain considered to be ordinary income please?

Refer to the frequently asked questions on the third slide. https://www.hud.gov/sites/dfiles/SFH/documents/MO_203k_Progr...

Hi AllJust joined the site.

If it helps, I've inserted a link to Cape Coral's permitting site below where you can check the status of work progress and inspections. 

It's not that complicated or worth paying someone several thousand dollars.Love the name STR Secrets as well.

Based on my experience coaching investors with my husband, who was a realtor many years ago, I strongly advise that, regardless of whom you work with, you meet the team, conduct thorough market research, get an appraisal, schedule an inspection, and also arrange for a site visit.

It looks like according to the county site (sbcounty.gov) they require all renter payment go to the active owner. 

Seems like 130 units is a beast to manage, I'd love to hear about your on-site management systems and "experience management" process to stand out amongst the fierce competition in the smokies. 

Feel free to track on the site above or if not, I'll post again with an update in a few weeks time as they get closer to some sort of proposal.  

He spells out how to invest in other markets from a distance.I do think you are over-complicating it.