Yes you can use commission as sourced funds for down payment on a conventional loan.However some lenders have internal overlays that don't allow it.

When it comes to real estate, here's a general list of eligible assets and their depreciable lifespans that you should know: Residential Rental Property = 27.5 yearsThis includes any building or structure where 80% or more of its gross rental income is from residential units.That means:- Apartment buildings- Single-family rental homes- Duplexes, triplexes, and quadplexes- Mobile homes (used for residential rental)- Any kind of residential lodging facility where the primary purpose is long-term rentalCommercial Property = 39 yearsThis includes non-residential properties like:-Office buildings-Retail stores and shopping centers-Warehouses-Industrial complexes-Hotels and motels that do not qualify as residential rental propertyLand Improvements = 15 yearsThese include sidewalks, roads, fencing, some landscaping, and parking lots that are separate from the building.Personal Property = 5 or 7 yearsPersonal property used in a rental activity usually has a 5 or 7-year life.This includes most furniture, appliances, carpeting and various machinery.Qualified Improvement Property (QIP) = 15 yearsGenerally, this includes any improvements made to the interior of a non-residential building after the building was placed in service, excluding elevators, enlargements, and the internal structural framework.Computers and Related Peripheral Equipment = 5 yearsVehicles = 5 yearsNote that the land itself is not depreciable.

Fast forward to today in January 2025:Mayor Johnston of Denver, who has now been in office about 1.5 years, announced that the city had completed a deal with Westside Investment Partners to essentially trade this 155-acre plot in the middle of the city, for a 145-acre plot that the city owned near the Denver International Airport. 

Do you run the numbers yourself, do you have an internal CFO, or do you work with a fractional party CFO?

So, yes, you can absolutely have a great rental business as an out of state ( and even international ) investor, as long as you have a solid team that are your boots on the ground. 

It's a good time to review markets, but living in China there are a lot of other closer, international markets that could be options as well.

Second Street is an international mortgage lender actively investing in Costa Rica.

Also, the state of formation is likely where internal disputes would be brought among LLC members, so if you and a partner and/or spouse live in CA, you probably want to arbitrate in CA if the two of you had a disagreement.

My investments are all in the Twin Cities suburbs, but I have helped people with financing as far north as International Falls :) @Jeff Schemmel who do you know in the Duluth area?

If the project is in Canada then I would look to an attorney that understands international law as it could be more complex.Personally for something along the lines of what you are doing I would look to partner with another developer vs trying to raise the capital as that will be less labor intensive.