If you tell the IRS it is an expense, it is no longer income.W2 income does not use a 2 year average for your base pay! 

I was trying to appeal to the next generation with more app-based management rather than phone calls and emails.  

Spending on expensive upgrades is not the answer to improve your tenant base in this type of area.Keep the homes habitable, clean, and safe. 

My answer for you is not based upon your Sub2 question primarily.

Quote from @Drago Stanimirovic: Hi Paul,You're in a strong position with your portfolio, and both strategies have their advantages.

Because it is always changing, but not always warming.....gotta cover your bases y'know.... 

The already-constructed home is one point on the base of the triangle, and the other plots comprise the rest.

Be aware of California taxes that will hit you in their other funds based on your income level.

Based on what you've told us, your rate should be at prime (7.5%), unless you are over 80% LTV, then it would be prime +1.Jeff

The average homeowner is estimated to be underinsured by 40% based on replacement costs and that doesn't include the interior contents and assets, many of which are in the multi and even mega millions.