Instead, ask your accountant to write a letter of explanation for your finances that adds back depreciation and capital improvements rather than expenses.

But any improvements are at your risk.. the redeeming party just owes you your cash plus in our state 9% and any VERIFIABLE expenses you paid to protect the asset.

Strive for constant improvement, adapt to market changes, and continuously learn and develop your skills.

Are you looking to buy more properties in LR or just improve the cash flow of your current one?

@James Boreno You’ll likely owe taxes, but don’t forget to account for your adjusted cost basis, which factors in the original purchase price, depreciation over 10 years, and any capital improvements.

Most are being encouraged to buy Class B-minus rentals and below, but no one corrects them about their mistake of using Class A assumptions on these rentals:When a newbie gets smacked with reality via their losses, they then can only suck it up until time improves their mistake or dump at a loss.So, my question is, why can't we all do better and grow our industry with integrity?

Your best option would be to refinance your loan (if any) and get a construction loan for the improvements.

Any other suggestions to improve my due diligence process would be appreciated.

I ran the numbers and looks like a good deal (7% cap rate, 5% ROI, and ROI will improve as the years go by).

Can you improve commercial properties with great results?