This was a tremendous win for real estate investors, and it provides a unique opportunity for the passive investor to take advantage of tremendous passive losses the first year they invest in an investment through the syndication model.In the same example as above ($375,000 house with land worth $100,000), your depreciation expense could be closer to $100,000 in the first year compared to the $10,000 per year for $27.5 years.

Every single deal is unique and comes with its own pros and cons.I recommend you underwrite this deal on its own.

It is a very unique property that consists of a "tree house" that is purposely designed as a couple's retreat - it's very romantic and has all the right touches. 

@Pepper Bradford-  thanks - 1) anyone thats  bringing in  funds for the  down payment on a  inv purchase  will need to be a  co borrower and go on the loan / title   2)  this isnt  anyhting unique or new   for  traditional lenders    3)  many investors  will  balk  at  having to  provide your  lender  all their  financials / tax  returns  etc ....maybe you can  find some that  are OK with this 

We do a lot of work on regional lenders, but fewer changes on Fannie

Can anyone recommend a developer in the Sacramento region?

I paid for a consultation with a colleague who was the IRS technical advisor on code 469 for 25 years to offer some feedback and clarity because it is so unique. 

This bank you are showing likely doesn't lend nationwide and is local, regional at best.It is wonderful that you found a local bank that are offering such terms in this market still.  

What's the deal landscape like in this region for SubTo, seller finance, and other more creative methods to purchase real estate?

It's definitely a unique strategy for unique situations.