In the future, I’ll factor in contractor costs more.

More like a 101 of taxation: you had a reserve of losses -> it helps when you have profits.And a tax geek addendum:I also do not see a direct link to cost segregation benefits here.

The issue is our land value is high, so the structure value is low compared to the overall property cost. 

It is not low cost.. you need 7-8 rooms per house to make it decently profitable. 

Would you mind sharing the cost?

@Jake Faris Contributions for development and remodeling will be capitalized, increasing the property’s basis and reducing taxable gains upon sale, These costs are not immediately deductible.

Was cash invested including rehab costs?

I was planning to send letters explaining the higher cost in taxes, market rents in the area, and then offer a gradual raise to meet in the middle somewhere.

And then also do you typically repay each partner their upfront costs from the profits before then distributing profits?

House hacking is a great way to reduce living costs while building equity, and BiggerPockets is a great place to network and gain insights.Good luck!