As the tax code is concerned all of the costs to create your rental property business (buying it and making it usable for it's intended use) and one in the same. 

Make sure you create a screening policy and don't deviate from it. 

We have offered to allow her to pay a reduced rent for the first few months as well but I am worried that may create some sort of limit on how much we can raise the rent on her in the future.

There is a chance a national wildfire or disaster policy will need to be created, some form of Government Service Entity such as Fannie and Freddie to stabilize the insurance market. 

Also, given our members are more focused on scale, many of them elect to create a syndication (even if it's a fix and flip fund), given the significant upside once raising more capital is possible.We also have clients who use our process for raising capital for crypto funds, buying existing businesses, hedge funds, and etc.

What I said in an earlier comment about "section 179 can't be used to create a business loss", that wasn't entirely accurate/complete. 

Do my 3 associates need to create a LLC to be able to do these renovations or can any individual do them, as long as proper permits are pulled? 

Happy to provide feedback in return and share one of the lead magnets we’ve recently created for review!

We create a new joint LLC for each investment, and each participant gets listed as an owner of the joint LLC. 

Diversifying income streams and focusing on appreciation alongside cash flow creates a more balanced and sustainable strategy.