@Basit SiddiqiThanks for the quick reply; my MAGI is above the threshold which permits the $25k loss/deduction.As such, I believe you are saying that the rental losses could not offset the IRA conversion.Joe

Also, this is going to be additional permits and dealing with contractors that I am entirely new to. 

They are not making a luxury purchase... that would be the second home on the beach or in the ski resort.In any case, we are off track here because the point of my article is that investing in real estate is not a casual investment, and that investors need to understand that many cities are looking for investors to cure the failures of the city.Investors need to be aware of the point of sale inspections, pending lead safe requirements, rental registration requirements, vacancy permit requirements, local property tax policies, enforcement of waste requirements, permitting policies, contractor registration requirements, etc. before they buy.

So if you put @Scott P in you posts I'm happy to share thoughts when I receive the auto-notification.I've pulled permits to work in Phoenix. 

You choice from those and we proceed to develop this until its of a level that it can be used for permit filing and be constructed by a Contractor.     

There are lots of rules , regulations ,permits ,warranty , certifications to be a HVAC contractor , plus labor costs are high as are the costs of running a business .

Occupancy permit.

From what I understand Arlington has passed an ordinance that will begin near the end of the year that requires a permit in order to operate an AirBnB if it is not in a "tourist zone" which they designate as with 1 mile of the major attractions such as the ballparks etc.

In Ontario we can evict if we have a building permit to do extensive work.

My question is basically, what would be a fair monetary breakdown if I will be providing the funding (permits, city fees, plans, public works, and the actual construction)....my ballpark estimate is that all this will cost 2.2-2.4 million if I build nice quality townhouse style 3 bed 3.5 bath townhouse style units.Should I offer him 70/30?