You won't "save" the property tax portion because it still has to be paid.

I want to come out of it with some portion of equity, but also want want to keep the deal sweat enough for the investors to enter.

@Jason Dillard - Definitely not the same as paying taxes on principal portion of your mortgage, but yeah, one ought to have enough cash to deal with taxes and bookkeep appropriately...

@Brian Adams In your opinion, would it work for a passive investor in a syndication on an apartment complex, in exchange for the money invested receive the syndicator's portion of tax write offs for the project instead of return of capital?

I have a ton of clients in Chicago that have used the 203k loan, here is what I would say to all of thatfirst 203k is only hard if your lender is not great at it, there are some lenders out there that do a big portion of their business in renovation loans. in terms of red tape it really depends on the type of renovation you are doing many renovations can be done with a streamline 203k which just needs the bid and your contractor to be licensed.  203k is higher interest than a normal fha most clients refinance after they complete the work to get the rate back down.your pre-approval shouldn't have a purchase side and a construction side to it, if your approved for 230K you can buy a house for $1 and renovate with the other 229k the ARV just has to be close to the 229k

I included wording that, if July's rent was paid in full, I'd return the unused pro-rated portion if they moved out sooner than July 31st. 

Setting a goal of buying a multi unit and living in a portion of it while you rent the rest would be a great way to get started.

I love my job and I am looking to invest in real estate with a portion of my $ savings till date (and keep adding more in the years forward with additional savings and built up equity).  

I considered doing a non-refundable portion but feel that it is my problem to shampoo carpet after a tenant leaves (I actually own a pretty heavy duty cleaner).

Why are you not just closing on the note and mortgage right away and avoiding the lease portion of the deal?