Not a good situation.Let's put all that aside for a moment, though, and assume you can avoid all those pitfalls.

I'm filing my taxes using TurboTax and completed form 8824 for Fed purposes.

(Rental loss = repairs or renovations exceeding rental income) If you are a high earner, you generally want to get advice from a CPA that understands real estate income & taxes, but here's a few thoughts:1.

You are at the 12 month mark so you have hit the occupancy seasoning required but again I would refinance to avoid the FHA 100 mile rule once you have the equity at 85% or less.

I will wait until we've held the lot for at least 1 year to avoid additional taxes owed per my CPA's advice.

Instead I hedge my returns by saying to them, I don't want you to have to worry about more payments right now, but I will need a better sale price in exchange.I like to do these deals in a retirement account that's tax advantaged. 

Add in the saved time and avoided headaches and hassles of self managing, and you'll find the cost is well worth it. 

Obviously fix and flip and BRRR is the mainstreet strategy because people seem to avoid new build and ground up construction as people say it's "expensive" but I want to hear from someone who has done it themselves.

They have shown me tax returns for the business. - I asked for 3 months' bank statements and have about 20k liquid- 16 derogatory remarks on credit report- (I feel dumb for even asking considering this)Here is the kicker:- they own a restaurant and already said "How would you feel if there were occasional workers that stayed here?"

Looking to invest in states like Texas, Florida, Tennessee or any Landlord/Tax friendly states.Any suggestions would be very much appreciated.