I've watched my parents reach great levels of success through real estate, and I've heard countless stories and witnessed first hand in other peoples lives the power of real estate.

Can I do write off on that income as business expenses?

I live outside of Idaho Falls.

Lending options depend on if you're going to live in the property or not.

Less Competition - High-interest rates and market uncertainty may deter some flippers, reducing competition for distressed propertiesMarket Demand - In some areas, there remains strong demand for renovated, move-in-ready homes.Price Negotiation - Sellers of distressed properties may be more willing to negotiate in a high-interest rate environment.Cons:High Carrying Costs - High-interest rates increase the cost of borrowing, which raises your holding costs (interest payments, taxes, insurance, utilities).Market Volatility - Real estate markets can be unpredictable, and high-interest rates may lead to slower home sales and declining prices in some areas.Renovation Risks - Unexpected renovation costs and delays are common risks in any market, and high-interest rates exacerbate the financial impact of these issues.Financing Challenges - Securing financing for both the purchase and renovation can be more difficult and expensive in a high-interest rate environment.Mitigation Strategies:Thorough Market ResearchAccurate BudgetingEfficient Project ManagementFlexible FinancingExit StrategyFixing and flipping properties in today's market can still be profitable if approached with caution and thorough preparation.

There is a famous case in San Francisco a few years ago where a local couple bought the HOA property like sidewalks and streets, in an expensive neighborhood.   

It also makes the tenants sympathetic to you as it seems that you are no longer the "bad landlord" and just someone trying to make a living "just like them".

At the end of the day, it's still technically a Single Family Home with an extra unit to help offset expenses, but not a "true" investment property or legal duplex.Does anyone have any ideas on creative ways to finance building this (besides Refi or HELOC)?

So just have your 'spidey senses' about you and really think long and hard before you to commit to anything that is super expensive where the return could be marginal.From a tax perspective, you are bound by the rules of the IRS.  

My tenant lives in the unit above me and has been there since before I purchased the property (She is also a section 8 recipient).