Quote from @Jay Redding: Steve - We would be interested in taking a closer look at this. 

PS the foundation issues are caused by Yazoo clay.. in the newer homes the builder dig out a few feet and then rock up before foundation.. the old homes are just  laying on the existing soil ..

Right now we're in the red, which we figured.

Rose needs to be red.

On the other hand if they are a sponsor that is experienced in stopping a skin in the game, that's a huge red flag for me.c) how open to scrutiny are they?

That was when all the red flags started coming.

. $50,000 times 15 acres equals $750,000.You give that $750k development right to an agency, and It is treated as if you gave $750k to the Red Cross.It's a huge deduction.Depending on your tax bracket, that tax deduction could be worth several hundred thousand dollars to you.It's a pretty big deal.

I'm trying to plan this out as well as possible to avoid any issues down the road.I've seen the stories where people run into issues meeting this requirement and get scrutiny from the IRS, to me it seems the two biggest red flags might be when they hire a property manager and also when they rarely go out to the property to work on it themselves, always relying on contractors.

What I also enjoy is when people put out articles with contradicting view points and in six months or a year point to the - "see how correct i was", well yeah you placed bets on both red, black and green so you were going to be correct because you bet on all options.

I know the Calgary market very well and I can't find deals that meet those criteria with realistic rent rates anywhere south of Red Deer right now.