@Michael Lee Gunderson You're best bet - if you'd like to get decent returns - are real estate related investments, such as private lending, tax liens, and mortgage notes. 

It is an additional tear down cost to get the land grade ready.

With the work that I have been doing (new construction, addition, full Gut, Renovation) my costs are roughly $170/sqft (depending on finishes, this was a really nice finish look) $120/sqft , $80/sqft, $70/sqft... in that order.

I work as a software engineer but I'm looking to grow a real estate portfolio to build additional income and wealth over the long term.

Those items are currently deductible and, in addition, not subject to depreciation recapture later on.Ryan, it is common for CRE investors to use cost segregation to eliminate passive income and not uncommon to use it to offset earned income for those with the real estate professional status that you mentioned.

Michael,Hi, I think your best bet is to find a place that needs a bit of TLC like what Christian Vann mentioned.

@Clyde StackhouseRenovation expenses prior to having the property "rent ready"should be capitalized and depreciated as an addition to basis.

An Umbrella policy provides an additional limit of Liability coverage (usually in increments of $1,000,000) that responds if underlying policy limits get exhausted in a covered claim. 

Additionally, it may present some potential income that would never have fallen in my lap otherwise. 

In addition to that, I have family in New York and my fiance has family in Cincinatti.