The interest would be deductible from rental profits, but would be taxed as interest to you.You should speak with an accountant who can get the full picture of your situation and help you decide what the best option is.I will say, that most people here on BiggerPockets, including myself, recommend keeping things as simple as possible starting out.Best of luck!

Here in Plymouth I read that over 40% of the town (including me) has no power. 

I'm a Realtor based out of Scottsdale and help investors buy/sell investment property around the Valley, including 1031 exchanges.

If you include furniture, washer/dryer, and/or utilities in your rent payment, it is easier for the students and they (or their parents) are more than willing to pay the premium. 

So we are looking for a house down near we work, and we have found some on the market we like between 250-300K.Debt, we have roughly 27K in total debt including student loans.

I don't see anywhere included with my taxes where an election was made, not to mention he never asked which one(s) we may be using this year.Then there's the subject of being a "real estate professional." 

There was a lot of hard work, determination, and persistence in this project.Rehab Budget Row Labels Sum of Amount Details of Rehab Exterior Improvements $367,020 1) All Exterior Carpentry, Brick and Painting Work2) Tree Trimming3) Foundation repair work for 2 building4) French Drain to reduce soil movements HVACs $146,307 New HVACS replaced as needed Interior Unit Rehab $502,094 1) 5K Budget on average for a unit interior.2) Total 81 units remodeled including new painting, crown molding, new vinyl flooring, new stainless steel appliances, new fixtures, resurfaced countertops, new light fixtures, new ceiling fans Landscaping $30,000 1) Landscaping near Office area and Villa Lighting $6,932 3) Exterior porch lights and critical building lights Maintenance Tools $10,653 4) Maintenance tools such as HVACs Gauges Office/Laundry/Community $76,718 1) Office were renovated completely.

The reason why American business (this includes real estate businesses) have returned, on average, higher returns is because of the risk involved.

I have invested in Boston for a long time, and as we are seeing the growth in the submarkets, including increasing gentrification, I have doubled down.

He has around 40% of the cash needed to close and he is letting in family/friends on the initial investment(other 60%) to close the land for some equity in the project.Here is what he is proposing: 6 family/friends(includes me) should open a LLC and put the 60% of money required to close the land in the LLC bank account.