The terms of the loan offered must meet the following requirements:First, the financing must have a repayment schedule that does not result in negative amortization.

Oregon has a very easy LLC forming process, my question is, if I form an LLC to begin the application process to acquire a loan, will my personal taxes be negatively affected this year?

Why are you holding on to the property when you will be facing extensive negative cash flow.

Why all the negative answers to a honest question.  

If you keep it and rent for $1350 you would likely have about $150/month positive cash flow but after deducting the return on your equity (10% on $75K) you would have $475/ month in negative cash flow.Rent to value is too low and the equity is killing your cash flow.

I want to create a statistical model that can predict if a certain construction project will succeed or not.

Rather than underestimating and wind up in the negative.

It was primarily financed by a 1031 exchange on a vacation property my parents owned that was producing negative cashflow (so they decided to reinvest).

I don't know what the rehab costs would be ultimately so I guess that's worth investigating, but based on the rent alone and the mortgage, I think it would potentially be a negative cashflow.

I misjudge ARVs all the time - sometimes positively and sometimes negatively - but I usually get pretty darn close.