Hi Ryan,Typically construction financing isn't based on your taxable income and rather more contingent on your experience, FICO and the deal itself.

Step up in basis to reduce your heirs' taxes and morePlus the real estate tax "deferral" can end up being permanent if played correctly

The flat fee buyer agency fee reduces the amount of the buyer credit/refund, generally by $6,000 (although options range from $999 to $8999, depending on how much help the buyer wants from the agent).

HI @Jimmy RojasYou have to show 2 years of taxable income to the IRS.

Meaning you get 4-5X the depreciation to defer your income from being taxable.

What process reduces the payoff by 12 years?  

The problem is that your debt payments are going to basically wipe out that $400K profit unless there is room to increase revenue or reduce expenses.

Just be mindful of the following things when it comes to California.California does not recognize Bonus DepreciationCalifornia does not recognize real estate professional status.Therefore, you can potentially reduce your Federal taxes but not your California taxes.

This is often shown in the distributions box, and reduces your taxable basis in the deal.  

Yet, many investors overlook simple strategies that can significantly reduce their tax liability.