The first is that there's no consensus between tax professionals, and the second is that you will not like my personal interpretation.My interpretation is:Until the property is "placed in service" - everything goes into basis.Illustration.You buy a property July 1st.You finish rehab November 1st and put the property on the market.Your tenant moves in January 15th.The property was placed in service November 1st, and it does not matter that the tenant did not move in until the next year.Everything paid between July 1st and November 1st, including interest and utilities, goes into basis.

Hi BPers, We have just made a purchase which is our 11th property, yah!

Quote from @William Dorrough: I currently either purchase and value add large scale multifamily properties or develop, and build ground up my issue with scaling is we have done this without brining in investors i have a great deal flow with a good track record im really looking to do more i have the capacity but have the need for more capital in one way or another  Scaling without investors can be tough, especially in multifamily.

Purchase price: $265,000 Cash invested: $200,000 1930’s historic home with a converted garage.

Are they going to be able to buy your proudly done flip.3) If you misjudge the market, do you know when to dump it.4) Can you put a spreadsheet together on your purchase costs, carrying costs, rehab costs, closing costs, selling costs, tax costs, contractors that don't show and delay your project etc. etc. etc.5) Is the return worth the risk.

Of course, it always depends on what your purchase price is and Dayton does have cheap homes! 

Purchase price: $255,000 Cash invested: $51,000 Second property, bought soon after the first multi-family.

Washer/dryers are often abused, so there's the initial cost of purchase and the risk of increased repairs.

Quote from @Brendan M Hornung: I reside in Southern California and started my investment journey in March of last year by purchasing a sub-to single-family home in AL.

That ensures you don't spend it on other things and that you know exactly how much you have available to spend on the next purchase.