@Ruben VanDusenYour wasting peoples time and good natured sense to help others.  

So In SIMPLE terms; you are stating that REGARDLESS of whether the FULL $60K in funds paid to the Seller for the OPTION to buy the home at $300K is APPLIED towards that $300K "Strike Price" reducing the remaining amount due to them to $240K OR if only $30K of the $60K in funds paid to the Seller is APPLIED reducing the the remaining amount due to them to $270K - the Tax Treatment for THEM (the seller) is the SAME on the $60K paid for the OPTION ?

@Jay Hinrichs: Not meaning to be disagreeable, that's not my nature, but it's in the same thread where you were promoting what you do.

I have heard that heat treatment can damage silicone seals in plumbing.

(Also, the developer is reasonably experienced + wealthy and has personally guaranteed some of the existing development projects - but wants to move away from that)I'm also planning to get some equity in the JV / the broader development company (much less equity than if I were to be a pure equity investor of course). because I do think this could scale to 300-400 homes / yearOf note: These homes are modular in nature - so are faster to build and margins are projected to be attractive.My questions for you all is:Have any of you lent to development assets with cross-collateral from cashflowing properties like this?

Be a great landlord, provide timely communication, responsive maintenance and fair treatment.

Add Colorado to the list of states that insurers are fleeing, along with California and Florida.All the states that are prone to natural disasters, insurance costs are exploding as the insurers pull out of those states en mass.

I know it’s the nature of the business, but now with overall cash flow cut in half I am thinking maybe just sell it.  

Typically in northern states the cost for natural gas is way cheaper than electricity so over the life of the system your utility bills most likely will be cheaper with gas heat.Ductless split systems use electricity to power in heating mode.

Zoning, subcontractors, mother nature, P/I during construction and rent up, your loan doesn't get "fixed" until after construction, material inflation, etc, etc, etc.You have taken most of the risk off the table with family financing and family construction.