Then you can quick claim deed to an LLC or use an umbrella policy from your insurer.

My question is, if I do incur a loss on the property can I just claim it on at 1040 form or will It just lower my personal W2 taxable income?

So I did a flip with a contractor/partner and we had a budget for the rehab at 80K and he brought me a bunch of receipts with no PO regarding our subject property and is claiming that we went $40,000 over budget.

What is the status of the insurance claim? 

We have a 41 unit apartment complex, and our insurance was about 12k per year for an ACV policy, but last year we were hit by a bad wind and hail storm which caused us to have to file a claim for the roofs and some AC units. 

My amount was much lower ($700), so I went to Small Claims Court and it eventually worked wonders. 

Make sure all the tenants are paying and paying the amount the seller is claiming he gets per door.

Tenant also claimed that because of Covid she will not do a final walk through with me on Sept 30, but would just leave all the keys inside the property.

Could she come back and claim equity? 

We have 2 loan scenarios: FHA with 3% interest rate and 3.5%($17,000) down BUT we have to claim $150k of income on our tax returns for 2 years and pay IRS 90K (2 years worth) total in taxes because we are self employed. 2nd scenario: private lender offering 4.5% interest rate with 5% ($27,000) down 8 year interest only loan converting to fixed thereafterwhats the wise choice?