So for the first item on the balance sheet you put the purchase price and then for the WIP item you add all purchase closing costs, reno/holding expenses, sale closing costs and then finally put the sale price as revenue?  

Carrying costs can add up quickly.

@Austin Carr I don't know of any local groups who analyze deals in person, but I host a free session each Saturday at 4:00 P.M.

Hi Troy - I suggest considering tenants to carry renter's insurance that includes liability coverage.

So I have a FixedAssets account in the chart of accounts, but that's not really usable for tracking the per-item depreciation...there's no entry for when it was placed in use, no way to state depreciation lifetime, nothing that ties loan points to the loan so you notice when you refinance that you should take all the rest of that line item as depreciation immediately, etc.

As an LP, I only care about net returns on full cycle deals, because project level can, and often are, bring down project level returns significantly once you take into account GP fees and carried interest2.

Obtaining a $200K loan to cover the tax appears to carry a similar risk of a lien, potentially jeopardizing my mortgage approval.What would you advise in this situation?

Also, you'll eventually have cap ex (big items) to pay for and those costs are only going in one direction, up. 

@Adria T. the PM company has to communicate, get a tenant in quickly and be able to handle items that are unforeseen..

., lower Airbnb income, longer renovation time)Consider professional property management to reduce your workloadEnsure you're compliant with all local laws and regulationsFactor in potential capital gains taxes or other tax implicationsRemember, while the potential returns look attractive, real estate investments always carry risks.