The buyer says in text messages that he is the actual buyer, will not list or market the property, and will not enter the property before closing.However, he refuses to:Add an addendum or put any of this in writing,Modify the wholesale clause, andChange the clause granting unlimited access before closing.He keeps saying it’s a “standard contract.”Would you proceed or consider this a red flag?

.), you're often limited to $25,000 of passive losses per year—and that phases out completely if your modified adjusted gross income (MAGI) exceeds $150,000.Real Estate Professional Status (REPS) or the STR Loophole: To use rental losses to offset W-2 or other active income, you must either:Qualify as a Real Estate Professional (750+ hours, primarily in real estate) and materially participate in the property.Or, if it's a short-term rental (average stay under 7 days), materially participate (100+ hours and more than anyone else) to convert it from passive to non-passive—even without REPS.Standard deduction vs. itemizing: You mentioned your CPA said deductions didn’t help due to the standard deduction.

If payer’s close, modify; if not, enforce.

Being right there with the tenants will limit your problems, just make sure to modify your standard home insurance policy.While your goal of, "the idea of restoring properties to there fully potential while providing housing for the local community" is admirable, it will NEVER happen.You're not the first, and won't be the last, investor with a big heart. 

We do have a new product that we are doing that we do a rehab to rent RTL on our balance sheet but modify into a 30 year fixed DSCR that we have a direct capital partner buying those from us.

Failure to meet the minimum standards will be cause for termination of the rental agreement.This Addendum modifies the rental agreement, and is part of an effort to establish uniform standards for Tenant and resident housekeeping.

I have a modified idea to this @Austin Fowler that honestly, I hope I am wrong about.... 

So truly, the big modifier here is in the details, of exactly what and how a person does there investing.

The Disney area may not be the best place to look as the amount of inventory here is ridiculously high and in order to be competitive and make a substantial profit, you need to invest a significant amount of capital in purchasing a higher priced and larger property and then investing significant amount of money into renovating modifying, customizing and turning that large home into something truly unique and special so that it gets people's attention and you are able to attract larger groups that will pay a higher nightly rate.

Quote from @Charles Kennedy: 💭 Question for Note Investors:When buying non-performing notes, do you prefer to rework/modify the loan or go straight for foreclosure and property?