If you are getting financing from a bank or mortgage broker they will require you to get an Appraisal, but if you are funding it with private money it still may be a good idea to get an Appraisal done to give you a reality check of where the market really is.As investors, you need to have a benchmark to tell you when something is a good deal or not.

I would bet the cash on cash return will not be a calculation you will have to worry about on this deal if you do not have ANY costs to you going into the deal outside of whatever is financed.

We could take this to a private conversation if you’d prefer, but I would love to chat about how you got started with your first properties.

did you end up funding the deal through your LLC or did you find a private investor? 

Note that this case was enacted before the passive activity rules were enacted in the 1986 tax reform bill and likewise before the 1993 creation of the real estate professional designation.But at the end of the day, if you're looking for primary authority in the code or regs saying, "You don't need to be a real estate professional to claim the home office deduction for rental activities," you're not going to find it.Your best bet would be to challenge the CPA as to why he believes the real estate professional designation is necessary. 

Private message me for my email and I can give you a few contractor contacts to come check out your project/needs. 

After that, I used local community banks and put 20% down, then hard money 20% down, then 100% hard money, now private.

Let me add that in most private markets, there are no standardized deal structures or terms. 

I had a fix/flip in Barstow,  I own a three unit in Lake Elsinore, and I was the private lender on a handful of properties in Barstow, San Jacinto, Hemet, and Blythe.  

I’m thinking about buying a foreclosure using a private lender in Cali, then refinancing it once it’s all fixed up.