As, I've mentioned to a few other posters in the past, when your searching in NYC, I would recommend getting super specific in your geographic parameters. 

This will protect you while you wait to build up your reserves to a higher amount. 

So I am waiting to she if he accepts.

@Joshua Michael HaumanI have mentioned this in prior posts.

VC firms typically do not do real estate, maybe a family office but that relationship takes a good amount of time to build and as you mentioned they will want to see experience.This is a hard question, but I ask them - what are you bringing to the table?

As mentioned above, the foreclosure wouldn't be an issue in itself. 

There would be somethings I'd like to just mention to them to see if it would help increase their business, but otherwise let them grow and we just have a percentage.For example, this could be part of the structure.

I know some of the other guys mentioned this, but I would start by networking.

It’s funny you mentioned this and I have not thought about it.. my wife and I was talking how we could buy land and put a cheap double wide on it (something cheap we can pay in full, $10,000ish) and in our back yard we could slowly start building the dream house we wanted. 

It will simply overwrite your original return.You can claim all the regular rental expenses that you mentioned.