@BG Malamut One move might be to increase the rent, inform them now and change the end date of the lease to summer or alternately go month to month.

However, if you or your spouse materially participate (e.g., 100+ hours and more than anyone else), you may qualify for the STR loophole, allowing depreciation and losses to offset W-2 or active income, even without Real Estate Professional status.

Materials and labor are still up, and margins feel tighter—but demand for updated, turnkey homes seems strong in a lot of markets.Some spots like Raleigh, Phoenix, and Atlanta are still hot for flips, but I’m wondering:What markets are you active in right now?

I already have a primary loan secured for the land and build, but I’m exploring options to bridge a small funding gap between loan proceeds and total project cost.Curious to hear from others:Have you used a second-position lender or alternative structure to cover that gap?

Construction DetailsWhat to ConsiderWhy It MattersChoose a Reputable BuilderExperience, transparency, and communication are critical for avoiding delays.Foundation TypeSlab, crawlspace, or basement—each has pros/cons depending on climate and soil.Quality MaterialsAvoid cheap finishes that won’t last; choose energy efficient materials that are sustainable and cut down on the need for high utility bills like solar, insulation, dual pane windows, and cool life paint &shingles to name a few, & prioritize structure and insulation.Change Order ProcessKnow how design changes during construction will be handled and priced.Legal & PermitsWhat to ConsiderWhy It MattersZoning & PermitsMust comply with city/county laws — delays or fines if skipped.Survey & Soil TestPrevents issues with drainage, foundation, or property boundaries.InspectionsEnsure every phase meets code (foundation, framing, plumbing, etc.).Energy Efficiency & SystemsWhat to ConsiderWhy It MattersHVAC & InsulationImpacts comfort, energy bills, and home longevity.Solar ReadinessPre-wire now for future panels or battery storage.Smart Home WiringPlan low-voltage runs (security, sound, data) while walls are open.Plumbing Layout & EfficiencyTankless water heaters, loop systems, and fixture placement save money long-term.Interior & FinishesWhat to ConsiderWhy It MattersFlooring DurabilityMatch material to room traffic and moisture levels (e.g., tile for wet areas).Easy MaintenanceChoose surfaces and layouts that clean easily (no white grout floors!).

I've partnered with several contractors over the years (before I got my own license) and it is very normal for the contractor to be paid for materials and labor, even if they are doing the build "at cost"It's complicated and as other have stated, you've gotten yourself in too big of a mess to be sorted out by some people on an internet forum. 

I Simply see this as a alternative to rentals or high yeild savings account. 

But it does support better recordkeeping, clearer liability separation, and partnership structuring if you bring in others later.Real Estate Professional Status (REPS): If you materially participate and work 750+ hours/year in real estate, losses (including bonus depreciation) could offset W-2 income.

Alternatives include Stessa (free) and Buildium (more robust, pricier).For testing, a phased approach is generally best.

I'm looking for alternative quotes that offer good coverage while lowering my premium.