Anyone who has participated in a bad investment understands this.

There are a few more “big ticket” items that need to be considered (Minisplits & landscaping) but most of the major costs have already been accounted for on this property.We currently have a 30 year conventional mortgage with a 7.125% rate on a purchase price of $750k. 

This is not tax or legal advice.

What made you interested in investing in this type of deal?

I can tell you this academy is a real deal!

For this reason, I often recommend setting up separate LLCs for Illinois investments.

., if the business is not a "rental" business per tax code, we count that income as non-passive and offset other income (W2, etc) similarly.Does anybody else have some guidance (or opinions) on this matter?

@Jesse Simmons  I did a similar deal as this in the past. 

This is your error margin.

We put this in our offers to differentiate ourselves from other offers and we can write off this expense as a tax deduction.