Here are a few lessons I learned during the renovation, many of which stemmed from the age of the house and unexpected hidden damages:1.Damaged Plumbing: Several plumbing pipes were ruptured or severely damaged, requiring replacement.2.Termite Infestation: I discovered termites, which led to additional costs for treatment and repairs.3.Rotted Wood: Significant sections of wood in the structure were rotted and had to be replaced.4.Lack of Insulation: There was no insulation in the att Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

This doesn't replace the need for a MSA that will capture additional clauses needed on a Contractor-SubContractor relationship, this is just a project specific form you would use in addition to the MSA (prepared by your Attorney):This template is for informational purposes only and does not constitute legal advice.

It’s generally better to pay taxes, especially if it’s preferential LTCG treatment and make a sound investment with cash that remains than defer and make poor investment decisions. 

Eventually, I’d like to start using the cash flow to pay myself and work toward replacing my day job income.

@Jason Dubon I take the cost of all appliances and divide it by 5 (avg lifetime of appliances these days) to estimate annual cost of appliance replacements.

We couldn't see the floors (too much trash), but probably safe to assume those should be replaced as well.

Do you know if a roof that was replaced due to an insurance payout can be added to the basis?

Good thoughts as we embark on this New Year.....our time is precious and should be valued way more than most people do.One of my favorite sayings - "Money is a replacable commodity, time is not"

Needs more cosmetic work than major rehab, and roof was recently replaced.

Sounds like, from your perspective, this type loan would not be best for my situation.