I read that if the AGI is above 150k then the loss allowance is reduced to zero, does that mean I have to pay the marginal tax rate on the trust deed income no matter what my losses are on rental?

Of course the anxiety now is being able to sell the flip projects. 

So for those of you reading and not participating here is the mistake I made I encourage you not to...Mistake #1I assumed that my bank offered FHA loans so I went online and filled out the application to see what I could be approved for and after they put a hard credit inquiry on my credit report I found out they don't offer FHA loans.Can only assume I will make many more mistakes along the way, thank god for BiggerPockets to help reduce them!

The investor buyer wants the tenant and locks out so they can asses damage to the property and reduce the price to compensate.

Moving some retained earnings into residential real estate to smooth the income stream and, in may case, reduce personal travel, was what motivated me to start investing in real estate as well.Therefore, my plan at the moment is to take the money I'm making from my business and throw most of it into income-generating property.

If you make a mistake and buy a bad property (or the base in Clarksville gets shut down or reduced in size or whatever), multies are much harder to sell at that point.  

If she does not get any income from the trust, then frankly the amount of interest paid to support the assets in the trust is not her highest priority since reducing said interest would not immediately benefit here in any manner. 

Advances made by a Mortgagee are recoverable expenditures, further reducing the true impact of a past due tax bill.  

There will always be more and more ways to spend money.Start by reducing expenses.  

Identifying which risk you are wanting to mitigate will actually help point you in the direction of how to reduce it.