For any LP who is likely spending a minimum 25k investment, this is a no-brainer expense, and quite small.

I believe you had a much better-than-average result here.

The D/F locations look great on paper but almost never pencil out that way with all the vacancies and expenses. 

Those can indicate poor management, deferred maintenance, difficult and expensive upkeep like ocean front which will bring up issues with rising oceans, insurance, and hurricanes. 

Theyre expensive, but you wont lose your home to foreclosure unless you move out, stop paying taxes/insurance, or fail to maintain it. 

Even if you rent at a break even or slight loss, if you could have 3 years of rental income offsetting your mortgage while realizing 3-6% appreciation, could be worth it, especially if you think appreciating for this area will exceed national averages.

I’m looking for a cash out refi for higher than 80% LTV due to the expenses that I’ve already put into rehabbing the property.

This protects against potential claims and liabilities specific to the rental.For tax purposes, maintain clear records of rental-related income and expenses, allowing deductions for insurance, utilities, maintenance, and depreciation proportionate to the rental unit.

If they work independently, set their schedule, and use their resources, they might qualify as a 1099 contractor, but misclassification risks IRS penalties.Wages for W-2 employees and payments to 1099 contractors are both deductible business expenses, but compliance is key.This post does not create a CPA-Client relationship.

Your expenses are not a reason to increase rent!