Will this deal structure result in PA transfer taxes of the improved parcel?

I would suggest spending about a year or so on BP as well as listening to podcasts / reading books on everything ranging from financing to taxes.

- Aside from the following: Condo fee, tax, home owners insurance, hurricane insurance (is this in addition to home owners insurance)?

(Vacant+tax delinquent, preforeclosure, etc..) 

Those are the taxes, insurance, landlord-paid utilities, and mortgage.

It currently cash flows $700/month after taxes, HOA, insurance, etc.If I sold, taking into account the costs to sell, I could make between $390-$440k in profit. 

We really want to try to get our Real estate professional status for tax purposes.

Based on a rough analysis for a project timeline, I believe the total project can be completed in 5-7 months with the team I have available if we get involved in completing the work on the project.Deal Analysis as a whole - Actual Costs may be slightly different but estimates should be fairly closePost Construction Estimated Market Value - Lot 1: $379,000 Lot 2: $307,000 Total Estimated Market Value $686,000+- $102,000 - Cost to payoff HML & Previous Builder- $154,800 - Estimated Cost to complete House #1- $170,370 - Estimated Cost to complete House #2: Includes New Well/Septic $7500, Impact Fees $2100, Permits $1000= $427,170 - Estimated Cost to Payoff HML, Complete Construction on House #1, and Construct House #2+ $686,000 - Total Future Market Value- $20,580 - 3% Buyer Agent commissions as the current owner(Listing Agent) will be listing these properties without compensation- $2,538 - Real Estate Transfer Taxes- $1,500 - Settlement Costs Paid at Closing______________________________________________ $234,212- $27,900 - Payment to Seller for Down Payment made by seller to HML @ Origination (For her to break even)= $206,312 - Potential Return before any Interest/Fees/Taxes/EtcI've spoken to a few HM Lenders and ran rough numbers by them.

Remember all your investment in repairs can go into your business costs for taxes. 

You cannot get a business loan or line without net income on IRS taxes.