Best way to do it unless she has multiple 6 unit properties to carry the weight of this one until it stabilizes. 

But here’s the deal: I’ve been reinvesting heavily in repairs, carrying losses, and trying to stay afloat while working toward long-term equity and freedom — but every year, I still get hammered on taxes.

In CA an unlicensed handyman can only do $1000 (labor & materials)Only a licensed c39 contractor can do roofing and must carry workers comp insurance on himself and employees.

I would look to MTR as that would help boost your income and help carry your higher debt service costs.

Quote from @Stanley Yeldell: Hey Rod — a few options to cover your down payment:Private Money Lender (PML): Partner with someone who’ll fund the gap in exchange for interest or small equity.HELOC or Personal Loan: Tap into equity from another property or strong personal credit.Silent Equity Partner: Offer a % of cash flow or future refinance proceeds to someone funding your down payment.Seller Financing: See if the seller will carry a second lien to help bridge the gap. 

Real estate investing carries legal and financial risks, from lawsuits to creditor claims.

If it can not be used immediately it becomes a loss carry forward that can be used in the future (certainly upon sale).Again I’m just speculating why your CPA provided this guidance. 

My uncle is looking at selling an apartment building, and I would like to buy it using an owner carried loan, but didn't know how to bring it up in a way that makes sense for him. 

Let them carry the load for you3. up to you4. increasing bedrooms/bathrooms/sqft is the best way to get a higher ARV.

I do that at my home & parents for cleanliness.If going to the back, carry them with you then put them on closer to exit.