Repairs vs Improvements

[Daniel H.]

Just wondering how a potential lender would account for improvements done to an investment property. Do they count them against income for the year just like repair expenses, do they not consider them at all, or maybe somewhere in the middle?

Expenses come off of NOI where improvements do not so does that make a difference in the bank's eyes?

I was denied a loan request for a line of credit on a commercial rental property that I own due to "insufficient cash flow". The rent is 4x the mortgage payment and there is more than enough to cover all expenses. There was not much cash flow due to a large amount of repairs/improvements. I classified them all as repairs on my loan application. Would it help to classify the improvements as improvements?