@Joel Evers I actually don't have experience in the space, just some anecdotes from others I've spoken with over the years, but similar questions apply to buying a business - period, others are more specific to the asset class such as more stringent environmental inspections need to be done - Phase 1 & 2 most likely.

@Sean DoughertyWith note investing you’re typically not in contact with the borrower until after you purchase the note and then enter into the loss mitigation phase.

By, $150k the allowable losses is phased out to zero. 

Along w/ the military (essentially recession proof) and our tourism, Biotech & our downtown is set to explode via numerous development projects. 

Right now I'm in the learning phase and am so thankful that I found this community.

I own a property in phase 1 of the same development and am confident about the rental returns based on our historic performance, even during COVID.

I was just finishing up high school and going to basic training for the military.

In the end I was able to sell with tenants in place and the new owner was able to utilize the tenants to help him hold the house before move in (he is military).  

As long as you meet the material participation criteria, you can deduction up to $25k if your modified agi is less than $100k (linearly phases out by $150k). 

@Gonzalo Diaz one issue you might run into is that you will need to have income, and your military income won't work if you're getting out in a couple of months.