I think first step is to find legitimate comps that match and support your 130k valuation and dispute the report to give the appraiser a chance to fix the report. 

If you live in a state with its own income tax, you might be allowed to credit your Illinois tax against your own state’s income tax.

If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

Don’t want to pay taxes on the capital gain.

As someone mentioned, the only thing passive about real estate investing is the tax treatment. 

Maintain - includes taxes and insurance?

I have one long term partnership that we share capital but I still do all the work ( rain maker) he is a cpa so he does do the books and tax return though :)  WE built one subdivision together were he put in 500k and I made him 1.2 mil in 18 months net profit so that was not bad.

.- Rents staying flat while property taxes and insurance increase.- Unexpected expenses that eat into profits.For example, some investors who bought in 2022 at high interest rates expected strong rent growth to cover costs.

You'll also need to show stable income for the past two years through W-2s or tax returns.Talk to 3-5 lenders to compare their rates, fees, and terms.

Do I just have to go by the actual numbers like revenue from last owner and taxes?