You may be able to deduct mortgage interest and property taxes before the property is in service. 

. - Inefficiency with payouts and administration will be compounded as the FAIR Plan has zero experience with a major pay out and lack infrastructure of assessors and technology to distribute the funds they don’t have.

I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property?

Home went to tax sale county kept excess proceeds.

@Tyler Speelman, A 1031 exchange solves the tax issue. 

Focus on tax-saving strategies such as cost segregation studies and bonus depreciation to accelerate deductions.By qualifying as a Real Estate Professional (spending 750+ hours annually and materially participating), you can offset your wife’s S-Corp income with real estate losses, reducing your tax liability.

Hi All, any input on renovating a house and possible tax exemptions under an LLC?

Maybe that is why the old owner didn't pay their taxes?

@Anita Z.I recommend finding an accountant who specializes in real estate taxation, tax planning and financial planning.

As mentioned by @Chris Mason, Bridge Loans: These short-term loans can provide immediate financing until more traditional financing becomes available or until the property stabilizes and becomes more attractive to lenders.Interest rates and stipulations may be a pain.Out of the box here and requires a few more research, SBA Loans: Small Business Administration loans can be an option, especially the SBA 7(a) loan program, which can be used for hotel acquisitions.I heard someone  mention - Mezzanine Financing: it involves a combination of debt and equity financing, which might appeal to some investors looking for higher returns.