ANd the worst part is that you are stuck holding the bag.

Money Bags.

I'd guess that1.469-4 is part of what @Sean O'Keefe and @Michael Plaks are alluding to... but as I don't do tax accounting I can let this "cat out of the bag." :) That being said, the devil is in the details, which is why we always strongly recommend that clients' tax accountant (CPA, EA, or other competent tax pro) be involved from the get-go. 

Did you dust the table?' 

It's not by accident that everything you do and build your business on, as a framework and foundation, is crushed to dust every now and then.

I'm aware that certain pockets are work in progress/ mixed bag with other streets are current or former "war zones"- I'd greatly appreciate any tips on what specific blocks to stay away from.As a former contractor I'm also open to BRRR opportunities that I can sub out most of the work besides demo and painting to get rent ready, but have no contacts in the area with the exception of a few friends that aren't in Real Estate.

For those interested, I’ll give the details when the dust settles.  

I put most of my multifamily deals in front of Fannie, Freddie, and 6 to 10 traditional banks and credit unions (grab bag mix of local and nationwide), as soon as I have the credit package together, if there's even a remote chance it will qualify.

Another bag of popcorn, please 

You will be the one holding the bag if the underlying lien forecloses.