They won’t wait (nor even try) for the value to rise enough for the LP to recover anything.Bottom line is I think that a large portion of deals that have a loan maturity in the next few years will ultimately result in a wipeout of investor equity if LTVs (at today’s value) are high, unless there is a V shaped recovery in values, which I think is doubtful (but I could certainly be wrong).

I am too busy to hear about the latest unit that got broken into and stripped.. or the latest drama of tenant who cant or wont pay either their total rent or their portion of the rent after the section 8 payment. and then the constant turn over and cost associated with turnover.. the Investors buying these are not C and D class folks like the tenants that are going to occupy their props so they really have very little clue about how those folks live their life and on the razor sharp edge they are financially.

Even if you only use it for a couple of years, you could sell it off and recoup a good portion of your investment.Now, on the tax side, renting gives you an immediate write-off, which might be easier for cash flow.

This is not a "real estate rental income" activity as defined by the IRS, so whether you are a REP or not, you can take this benefit.All of this is separate from a QOZ Investment, which would require you to first recognize a capital gain from another source (say a stock sale), invest that gain, hold it in a Corporate or Partnership structure (likely partnership), meeting the substantial improvement qualifications of being a QOZB, and then yes, you get to avoid the depreciation recapture at the end of the 10 year hold period, at least for the portion of your investment attributable to the original gain that you invested in the project. 

Only pay a portion of first months rent to get you a tenant. 

This exclusion covers your capital gain on the portion of the sale that’s not part of the exchange.3.

And as long as you have lived in it for 2 out of the previous 5 years you'll get the first $250K ($500K if married) tax free.But what's even better is that you can still do a 1031 on the sale for the portion that is used for investment. 

Finally, **transparency and trust** are vital; a lender who is upfront about all costs and willing to work through challenges builds long-term relationships with investors.

Having a reliable team of subcontractors that you trust to deliver high-quality work within your timeline is vital when you begin your building projects.If construction is a new area for you, I highly recommend finding a mentor in your region.

Each piece has a vital role to play.