I saw a prior post where you mentioned having a STR in Texas.you want to have a conversation with your accountant to see if it can be treated as an active property instead of passive.If it can be, then there is a potential opportunity to offset the losses against other forms of income such as wages, interest and dividends.

Last question, you are hiring an architect and submitting plans to the city in a renovation like this correct?

I studied and aced my real estate exam, got on with an awesome brokerage here in Lincoln NE. and holy smokes, that is just the tip of the iceberg.

As an investor first and a DSCR broker second, I'm always available for strategy sessions to increase profits.

Set up an appointment with the town building department. 

It sounds like you’ve got an interesting creative financing opportunity on your hands. 

I don't see an issue with this, but please screen them first.

I have also considered just getting an Investment Property loan and dealing with the less favorable rates and terms.

How does an owner run both simultaneously?  

Everyone really does want to meet you.Be prepared with an answer when you are asked what you do in real estate.