@Evan LoaderTexas does not have a separate individual income tax filing.Kentucky and Georgia may have a tax filing requirement based on a minimum net income/gross income threshold.Even if you are not required to file, you may want to consider filing - to roll over potential NOL's.Furthermore, a filing doesn't necessarily mean you have to pay a tax - i depends on what the income from the K-1 reports.

What are the risks with hard money loans? 

I have a potential hard money cash provider to fund the acquisition of land and fund new construction build.

I do not want to pretend there are no risks, just want to know what my risks are. 

That puts you right around July 15 as the final deadline to identify potential new properties to buy. 

I'm in a position where I can using leverage over and over to buy more properties.There would be cash flow in my area because the properties are not expensive however they do not appreciate much and the cities around me are dying and not growing.What would be the risks of using leverage to buy an extensive portfolio?

If you would like real numbers  on what you can potentially borrow lay out what you currently owe and what you think the duplex is worth?

Risk analysis8.

Make them both work for you, do some research on which city/state would have the best potential, and take some time to find them both. 

Our over all objective is to hold the house for equity growth and future financial freedom, but is it worth potentially just breaking even or having a small monthly expense to keep the homes?