Yes, I can take cash out and try to invest in higher return projects, a sort of carry trade, but the reality is that increasing return on equity generally involves more risk. 

Alternatively you could use Section 179 expensing here as well, but the expensing can't create a loss for the rental and may be carried forward.

Home equity loans may not be obtained on land that is taxed as “open space” or as agricultural land.The loan may not close until twelve (12) days after the borrower has applied for the loan and has received a formal notice of the borrower’s legal rights.Not less than one day before the closing, the borrower must be given a final itemized disclosure of the actual charges associated with the loan, including actual points, fees, costs and interest.

Basic services like garbage collection don’t qualify.Material participation: Owners must pass one of the seven material participation tests, such as:You spend more than 500 hours working in your short-term rental business.You carry out all the necessary tasks to run the business yourself.You work more than 100 hours in the business, and no one else contributes more time than you do (this is often considered the best and easiest test to meet).

When talking with a possible Property management company the LAST item to discuss is $, I can't stress this enough.

Just make sure you have a consistent policy for expensing items under this threshold, as the IRS looks for that consistency.In your case, if the Polyurea flooring is just making the garage look nicer and not really improving the structure or extending its life, you could argue it’s a repair.

These loans allow buyers to purchase a property “AS IS, WHERE IS”.Renovation loans are available in 30, 20- and 15-year fixed rate terms and can be used to purchase owner occupied, second home and investment properties.By time the renovations are completed, the home needs to be in move-in, live-in condition and conceptually ready to be resold without repair issues.Other Important Items to Know about “Conventional” Renovation LoansMaximum – Minimum Purchase/Upgrade Amounts:Maximum: Limited to 75% of the “after improved” valueOccupancy: Primary, Second Homes, Investment PropertiesRenovation Term:The renovation term for this program is a maximum of 180 days.The Borrower(s) is responsible for the work being completed within the escrow period.

Thanks, Jon I agree with Chris, look at those bills for daily use and you can show them those to give them a granular look at the items for proof of your side!  

A few items come to mind. 

@Beth Anderson always work backwards to determine a purchase price.ARV minus profit/equity minus Rehab+10-20% minus carrying costs = purchase offerThis is a simplified example, but demonstrates the concept.