As the market levels off or declines we could see steep losses for some bidders. 

Make sure you also work with a tax professional to ensure you'll be able to utilize those passive losses- And that the cost benefit makes sense. 

When we run our number to determine profit and loss over 5 years we always assume an increase in taxes along with other operating expenses, which then drives how much income (rent) we need out of the property to make our numbers.

Your CPA can allocate the cost between all the residences and then you can split the sale accordingly and get your exemption, and either report the gain/loss on the rentals or do a 1031 exchange.

You might be intentionally creating a business loss on the taxes that might run the risk of getting an Audit?

Net income on taxes 2021 plus 2022 CPA profit and or loss equals 43 back end DTI. 

See your PM co would have known this (or they should) and it would be rented by now :) BTW I live in SC, HOWEVER I am a Gamecocks fan, so I can FINALLY say , sorry about Clemsons loss, well not really ,  LOLAll the best 

They sell it by weight. 

A few other things that help to balance the risk I feel is that we are buying the home significantly undervalue due to the inflated interest rates (was listed at $500k in late July purchase price of $410,000) so there is a good chance the price goes up and we can sell at not a loss if we really need to pivot hard.

Can I afford that loss?