Are you able to use it easily, only with a HELOC.If you lose your tax deductions, then Uncle Sam is happy to take more of your money each year.Good Investing...

When you live in that duplex for 2 years and then sell you'll be able to take 50% of the profit tax free (the allocation for the side you lived in). 

We plan to stay in this house for more than 5 years unless another great opportunity arises, but maybe it is best to allocate a bigger portion of savings to our real estate investment savings account than our home improvement savings account for the first few years.

As always, make sure to run the numbers carefully and factor in local property taxes and HOA fees, which can vary widely in North Texas.Delayed gratification is key in real estate investing, but with patience, the rewards can be life-changing.Best of luck with your search

This would help save me some money to use on the house that is getting renovated and I wouldn't have any money out of my pocket up front for the duplex except when the mortgage starts.

Said it was one of his tax clients & would not give me their name.

So if you have the property for a total of 10 years, moved in at year 8, little value or tax advantage.

There could be local considerations that are tax and inheritance related.Thanks for the reply Ken.

For your $2M property, a cost segregation study estimates $316K in first-year depreciation (compared to $28K with standard straight-line), potentially saving ~$117K in taxes at a 37% rate.

Ensure you mention that they can save on commission and you have no agent representing you.