LOL  If there's going to be problems down the road, their advice or forethought as to the planning/building of the structure, at least the flooring/layering on top of the existing structure, is going to be sooooo vital. 

The calculation typically uses 75% of the property's gross rental income (as determined by an appraiser) to account for potential vacancies and maintenance costs.Monthly Payment Calculation: The total monthly mortgage payment includes principal, interest, property taxes, homeowners insurance, mortgage insurance premiums (MIP), and any homeowners association dues.Test Requirement: To pass the self-sufficiency test, the calculated rental income must be equal to or greater than the monthly mortgage payment.

Properly executed, an investment in these types of property can garner substantial passive losses, often equal to the amount of capital invested (or more) even in years where the benefit begins to sunset.A few words of caution: - The tax benefit is valid as long as the gain incurred from the sale of your properties AND the investment with bonus depreciation occur in the same calendar year. - Be careful not to let the "tax tail" wag the dog.

@Mark Redmann  pretty typical HML rates most guys shoot for 18 to 22% APR's  and hope for some early pays to increase yield.I suspect on the JV they also will do the 20k  deals or whatever split but they probably ( I don't know for sure just surmising) that they will have a pref return that is equal to or a little better than the HML rates....

Definitely, correct tax preparation is vital, and there could be a huge difference in your bottom line if your CPA is not a real estate expert and does not do it right.

There is a solution though because there is Non/QM which offers a few programs like (1) year 1099, Bank Statement, and DSCR programs. 1 year 1099 is self-explanatory, Bank statement uses 12 or 24 months bank statements gross deposits and divides that income usually 75% over 12 or 24 months, and DSCR requires No income or job, it uses the rents of the property as income as long as the rent(s) are equal to or greater than the proposed PITI payment.None of the above Non/QM offer construction loans though so you will need to stay W2 or wait 2 years.

Now if you were willing to pay rent equal to mortgage, taxes and insurance for the buyer then that could change the numbers.

We're considering renting it and paying that amount in rent downtown to equal the mortgage payment.

They are not the posters who have a lot to say about subject to, wraps and other creative techniques but are clearly missing vital information. 

Investing out-of-state is tough and finding a strong PM in these cheaper markets is equally difficult.