This approach enabled us to move forward with minimal delay, giving us the flexibility to work efficiently within the timeline we set.

(It is worth noting, I am not a lawyer so cannot advise you.)1) This option would minimize paperwork and provide good protection.  

What are some ideas should i explore so that I can minimize the financial loss in this situation especially given I cannot refinance even if the rates were 0% as my property value won't appraise.

@Nicholas Foy average sales price in The Eye was $87,944 in 2023.We consider it a Class C- Nieghborhood.So, tenants will probably have FICO scores under 580.Means you may want to use a Vacancy/Tenant nonPerformance factor of 20%+ in your metricsYou'll also need a real good team on the ground to minimize losses.

I've spent the last year or so (on and off) looking for my first investment property to house hack but have had minimal luck.

This will be the lowest barrier of entry into investing, as well as help minimize your living expenses.We are located in the Denver Metro as well, so if you do want to chat and explore options or just start planning feel free to reach out!

Wondering if there is any other legal way of minimizing double taxation for my Cayman Partners. 

Lastly as an illegal unit it is  huge liability if there was a trip and fall claim, fire etc your insurance may not cover.I recommend renters insurance for whoever lives there is mandatory to add another layer of protection. last option not considered is you living in the bonus unit to have a free place to live with minimal risk 

>Sacramento remains affordable at $1,850/month, with minimal growth.

Established flippers have the resources and networks to build close relationships with contractors, making it relatively easy to coordinate compliance at minimal cost.