You would need to file form 1116 to claim the taxes paid to PR.PR is a US territory but considered a foreign jurisdiction for 1116 purposes.

You will be considered the resident of US for tax purpose if you meet substantial presence test.  

This is one of the larger empty commercial lots very close to a highway, but just behind the main street. 

There aren't many 2 car garages in the area that are this usable (some are mostly unusable).Initial Repairs: $7-10k (mainly new paint, carpet, lower cabinets in the kitchen, glass block in basement and upstairs bathroom, updating bathroom)Expected Rent: $700/mo (probably doing Section 8)Expenses = $310/mo (based on items below).10% Property Management: $70/mo10% repairs/maintenance: $70/moRE Taxes: $35/moInsurance: $57/mo10% Cap X: $70/moI've used different real estate calculators but since they ask for the information differently I seem to be getting different numbers for my cash on cash returns and cash flow.

The main thing is to be proactive and transparent- hire an exterminator to come and secure the property from any intrusions and set traps as a precaution (be proactive - rats and mice will always find a way in if there is one).Try to get an idea of when construction will end or at least when the demo phase will end.

Can a third party lease part of a second home property for a commercial purpose?

@Channing Chanel - the next step should be one that aligns and fits to your investing criteria, goals and purpose.

My own work has not had dramatic fails, mainly because I don't rush it.

They will code the property, the category it belongs to, and pass that to the accounting department.If you hire a general bookkeeper, you might see that problem of coding it completely wrong versus someone that focuses mainly on real estate.To give you a bit of an insight, I am a developmental controller and I am currently handling over $200 Million in transactions for residential/developments. 

@Steve JohnsonIf you are talking about the one that @Brandon Turner wrote for his original book, I recall it being good but needed to get tailored for Pennsylvania purposes.