A portion of the gain from the sale of a principal residence can be excluded if the taxpayer fails to meet the ownership and use requirements or one-sale-in-two-years requirement because of [IRC Sec. 121(c)]—a.

The lead remediation alone was over $100,000 for just that portion.  4 Furnaces was almost $50K, Bathrooms were $20K, Exterior Paint was $7K it adds up quickly! 

I told her I'd have to discuss it (I don't really, it's my decision) because that is twice the size we typically allow.

Frequently, a portion of a residence is used for business purposes (such as a home office/rentals).

My first question is, what is the best way to add the cost of the land into the loan so he can get his portion back when we refi out of the construction loan?

You will gain invaluable knowledge for the time down the road when/if you have scaled up in size and want to turn your portfolio over to a management company on how you want things to be done.

What are the current sold comps in the immediate area for properties that are the same size in square footage? 

Purchase Price: $369,000Rehab costs to date (Cash/0% Credit card): $22,000Additional cosmetic rehabs: $6-8kAs-Is Appraisal: $420,000 (April 2021)Current Rental Income (friend living with me): $800Mortgage: $2000Comps in the area: $490-560K but average sqft price $264 with prop size of 2450 sqft, so could be more.Rentals in the area: $2.5-2.9K a month, not including additional living space.My financing/current capital methods:Personal Income: $129,000 a year.Rental Income from above: $800Student loans: $340 a month.No other debts other than CC payments for rehab and personal debts: $12,000.Savings (does not include investment accounts, 401k or IRA): $12,000Cumulative CC Limits: over $50k.My questions include:What are my best options to get this thing to cash flow while adding as much value as possible for a refinance (pay off CC and have cash for another off market property I have in the wings).

Purchase Price: $369,000Rehab costs to date (Cash/0% Credit card): $22,000Additional cosmetic rehabs: $6-8kAs-Is Appraisal: $420,000 (April 2021)Current Rental Income (friend living with me): $800Mortgage: $2000Comps in the area: $490-560K but average sqft price $264 with prop size of 2450 sqft, so could be more.Rentals in the area: $2.5-2.9K a month, not including additional living space.My financing/current capital methods:Personal Income: $129,000 a year.Rental Income from above: $800Student loans: $340 a month.No other debts other than CC payments for rehab and personal debts: $12,000.Savings (does not include investment accounts, 401k or IRA): $12,000Cumulative CC Limits: over $50k.My questions include:What are my best options to get this thing to cash flow while adding as much value as possible for a refinance (pay off CC and have cash for another off market property I have in the wings).

Let me know if your answer changes based on hot/cold market, amount of room for homeowner to turn their car around (don't have to backup onto street, front yard size, and expected profit (for buffer in case ARV is off).Thanks!