It gets complicated if you use a HELOC towards two separate projects as you would need to pro-rate the interest across the two projects.However, the answer would be yes, they would be deductible.

This is a complicated situation with multiple layers to consider, so here’s my take based on your questions:If you’re looking to move assets from the partnership into individual LP (Limited Partner) names while avoiding capital gains, you’ll need a strategy that complies with tax regulations.

My contractor has gotten impatient waiting for him and has started taking matters into his own hands (he did the jack hammering of the floors which my plumber said had "complications" and would "take forever to get through"). 

It's complicated and not recommended for newer/smaller landlords, but it's a profit center for me.

It's only as complicated as you want to make it. 

Let's ignore the package of or individual SFHs for the moment though, since that is a little more complicated and seems to have been a distraction.

You get to live in a property you own for free or almost free, while learning the ropes of being a landlord and you get very very favorable financing, where you don’t have to worry about finding private lenders or getting into any complicated or exotic investment strategies on your first deal.

So, for police officers to investigate these sorts of things is complicated.

Quote from @Sean O'Keefe: It’s more complicated then I thought to find a Real Estate CPA 🙂‍↕️Feel free to give me a call to discuss how I can help.

its too complicated for the average investor they wont understand it.