That raises a ton of red flags to me.

Along with the Thousands of vacant lots in the ubran cores of the Rust belt and deep south cities that have been blighted but the lots and infrastructure exits .. problem is can you get people to live there ? 

Just make sure to document how you arrived at the land value in case of IRS inquiries.If you’re unsure or want to avoid any red flags, consider consulting a tax professional to ensure you’re compliant and optimizing your depreciation. 

Similarly if you feel the material pricing is marked up by too much, that's similarly a red flag.

There is also the local knowledge of a market like here in Lake Tahoe where lending can be trickier so an offer with a local lender might get chosen because they have a reputation to get a deal done vs a national lender that can have more red tape and a slower process. 

Sometimes a face-to-face conversation can cut through the red tape faster than any paperwork shuffle.It might feel like the city's operating without accountability, but there are folks within the system who genuinely want to help - you just have to find them.

You’re neck deep in Paralysis of Analysis, a virus more debilitating than the Spanish flu, Bubonic Plague, and the latest virus du jour, Covid.I’m no different than you. . .well, I’m Italian, so I’m a better cook and I have three Uncle Tony’s who collect my rents.

Also remember the time these returns will take to amend along with the possibility of opening up audit periods/red flags with the IRS due to amendments.Doing this yourself on turbo tax likely won't be your best bet considering all of the details.

So if you have deep enough pockets I'd hold the property for longer and refi into a conventional loan if possible.

For example my simple spruce up would be, renno bathroom, and kitchen, paint, and redo carpet upstairs.But if i think real deep into what I could do to make it a STUNNER then I think, knock down walls, create more open/broken floor plan, add central air, possibly do an addition to add a 3rd bedroom and second bath.So when you could do ANYTHING .. how do you draw the line of what you should do?