Nonetheless, the Investor is savvy and has made several investments in other Syndication type of deals.

Section 1.165-1(d)(1) provides that a loss is treatedas sustained during the taxable year in which the loss occurs, as evidenced by a closedand completed transaction, and as fixed by an identifiable event occurring in suchtaxable year.If anyone else has a recent example of how they claimed this type of loss please let me know.

I would personally keep it as a rental, unless you think you can find a property that you could purchase and confidently say you can cashflow significantly more money and have the type of appreciation you has had in that property.By saying that you are in a great neighborhood, and seeing the appreciation you has had, do you think the value is going to keep going up at a good pace?

@Jonathan Klemm thanks for the mention@Jane Mun this is definitely a unique type of case in terms of compliance with the Building and Zoning Departments.

You need an assemly line approach, which is repeatable.Work the math backwards, determine how many units you need and what type of debt service they can carry for the deisred cash flow.

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

I would also make sure to know what type of financing you will be using--the traditional choice is a second home loan, but this doesn't allow you to use future rental income to qualify.

The type of info they will need is:1.

It wasn't until I hired someone to put a sign in the yard that I got the sale, What made you interested in investing in this type of deal?

I am assuming that this type of loan cannot be given to an LLC but I am not sure.