You'd likely run into IRS "personal use" rules that may limit how much of the expenses you can deduct and/or the timing of when those deductions could be realized.See:  https://www.irs.gov/taxtopics/tc41A CPA could explain how it would really work in plain English :)EDIT:  If you had 12 of them, lived in each one for 30 days/year, and rented each out at fair market rent for  300+ days per year, sounds like you'd be golden!

Speaking as a long-time Contractor, I would recommend handling progress payments like this:Basically, never allow the amount of money you give the Contractor to exceed the amount of work that has been done to this point.

I don't want to post them here because I don't know if it is allowed. 

The one positive is that it allowed me to make mistakes and learn while having the security of my W2. 

The price makes me wonder if STRs are allowed there.

I have some ideas (visa requirements, acreage, zoning (what it allows for), a section for expenses/upkeep, the amount that everything put together breaks down to depending on the number of people buying into it) but hoping for more specifics on the actual property analysis/numbers side of it since I don’t really have much experience and would need to be able to explain it to someone to help me create the sheet. 

They have the lowest rates we can find and since they are 30 year fixed...they allow us to cash flow better...which helps us qualify for other loans later.

Selling now means you could miss out on potential future gains.Market conditions: If the market is currently down, you might not get as much for the property as you would in a stronger market.Option 2: Get a Loan to Fix the BasementPros:Increase property value: Renovating the basement can add significant value to your property, both in terms of rental income and resale value.Higher rental income: With the basement fixed, you can charge market value rent, which could help cover the mortgage, property taxes, and the cost of the loan, with the profit potential.Tax deductions: The cost of renovations can often be deducted from your taxes, either through depreciation or as an immediate expense, depending on the nature of the renovation.Cons:Additional debt: Taking out a loan adds another layer of financial obligation and risk, especially if the increased rent doesn't cover the loan payments.Renovation risks: Renovations can sometimes uncover more issues that need fixing, leading to cost overruns and delays.Market risks: There's no guarantee that the market rent will remain high or that you will find tenants willing to pay the increased rent.Additional Considerations:Current Market Analysis: Understanding the current real estate market in your area is crucial.

That said, having my own GC license (I am also licensed in roofing, HVAC, & plumbing) allows me to to work not just for my own projects but for other developers and retail clients.

And for my parents to utilize prop 19 for their replacement home, is it mandatory that they sell the house or would this deed transfer of ownership still allow them to transfer their tax base via prop 19?