The individuals we hired to complete that work came very late at night, and without the necessary machinery to maintain the asphalt heated.

Plus you can add the "Historic" marker to the house, provided you maintain their standards. 

Retail Lessees pay out the nose, are responsible for NNN charges for improvements that they  don't control, and often pay additional rents based on breakpoints-- BUT the Owner has to be able and willing to make all the top-tier improvements and maintain the property at the highest level for the sake of the general public who will visit this merchant.  

One value add opportunity you might have is to implement some sort of RUBs for the heat, but you would still have to maintain everything. 

The street is tree lined and beautiful with old, well-maintained coops and quiet and family oriented.

I'm guessing it's more of the latter since 80% of ARV means that lender will do 100% financing in some cases, which is very rare, especially for a 1st-timer.

For example, you live in Texas and maintain your residency and a home and voter, driver's license and vehicle registration in Texas. 

We are full-time real estate investors who acquire below market residential properties in any condition.

I am a lifetime resident of Southeast Texas and a full time Real Estate Manager of a 121,000+ sq ft Retail Shopping Center.

I think there is fine line of lieing to claim "real estate professional" to evade taxes and those that honestly put in 750 + hours a year in real estate activities.I think there is a high probability for a full time engineer who deducts $50,000 in real estate losses to get audited when he claims himself as a real estate professional, and the chances are almost 0% of an audit if you are a full time real estate agent who makes a GCI of $250,000 or more and takes advantages of the full depreciation of his 10 rental property to shield his $150,000 AGI.What about the people in between?