While continued learning is important, experience is the best teacher, so take that first step.Good luck!

I am very nervous that the foundation is hopeless and I will be back at square one, burning another $100k. 

I am looking for recommendations for best financing options.The owner is considering financing it, but until they agree, I am planning as if they will not do so.The local credit union I use, who is very investor friendly, is unable to lend on properties larger than 4 units right now. 

If the answer is no, and the only goal is to sidestep some ability to deduct something, or be able to deduct a non-deductible personal expense ....assume it's a no-go. 

I understand it’s a different market but I think $1200 is a pipe dream.

Curious, is there another address in your city/town using 1002?

The key is doing your homework, just like you are re doing now.

The 203k is a renovation loan. 

Specifically what is the address or at least what block is it on? 

Here is the money trail.