In this case, the loss limitation is $25k per year AND your $25k loss threshold for the year begins to phase out at $100k in income and are completely phase out at $150k.If you have real estate professional status and are materially participating in long-term rental then the $25k loss threshold is removed (there is still a business loss limitation that you need to be aware that f but it is much higher then $25k) Would recommend finding CPA that understands real estate and REPS.

It was a complete run around for months and months until she took the story to social media, then a ton of people said it's happened to them too.

I completely agree.

We used the “homeboy remodeling company” and the house still is not completed (almost ~10 months).

Disclosure shouldn't impact the appraisal, it was completed.

Seller's also have to pay an attorney/title company to close, complete a smoke cert, recording costs etc. 

If you can't see certain rooms, like the kitchen, just budget for a complete kitchen.

The number usually varies from 10-20% depending on credit score, property analysis, etc.Some lenders will work with any level of investor experience, credit scores as low as 660 and can close in as little as 10 days (there are loan options for 640-660 credit scores- they require 20% down).Another good thing is interest only and 6-24 month loan terms- you can refinance by selling or refinancing to a long term DSCR rental property loan at any time once you complete the rehab.Once the property is ready you can sell it or if you want to keep the property as a long term investment, you can underwrite the loan based on your income /debt to income (DTI) ratios or you can go the DSCR route where the loan is underwritten based on the actual or market rents from the appraisal.DSCR loans won't use your income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Sounds like a heavy rehab project.

Ive never heard of this company, but just to point out, the problems you have identified are Baltimore problems, and dont sound like problems with the company.