Ok just a business point here.You are doing a 3 million dollar deal.You are injecting $500k of your own (from whatever source) into the deal.You are expecting payment(s) back on the cash injected.You are asking for tax personal planning advice over the internet for this deal.You might be better served by having a Real Estate Tax pro go over your entire tax situation and make some recommendations.Cost maybe $500, maybe $800 maybe more for comprehensive tax planning advice (maybe less).Might be worth exploring the cost/benefit of it--this is pretty big money after all.Good Luck!

@Justin Mathews, if the rent differential is not that big with a renovated/nicer space, make sure you only inject as little capital as possible.

We will again use this same hard money lender to finance the entire purchase and we will again inject roughly $100k to turn this one around.  

Many restaurants and investment businesses have been saved with the injection of cash-flow that is available with these tax strategies.  

Hi @Karl B. love the response, thanks for injecting the excellent humor.

If you have good equity in the site, then you may be able to find a partner to take 50% of that equity for injection of more capital to make it a profitable location.

Your job is then to inject yourself into the fray of the problems and be known as a problem solver.Winners find ways.

Solid strategy, and it probably will need injections from you and your partners though to actually grow as quick as you want it.

So the capital injected by you goes into the company and the company uses those funds to purchase and perhaps repair the asset.  

“The Opportunity Zones program establishes the framework for investors to inject investment into projects in our city that will have a significant social impact,” said Mayor Greg Fischer in a news release.