They are often classified as operating expenses or maintenance expenses rather than capital improvements (assets).Washer/Dryer/Stove/Refrigerator: These are assets as they are considered durable goods that will benefit the property over an extended period.New Baseboards/Trim, Doors: These are generally considered assets because they enhance the property's value and are not typically replaced frequently.Furnace/AC: These are significant components of the property and are categorized as assets due to their long-term benefit.Paint, Light Fixtures: These can be a bit nuanced.

Why buy now, when we're virtually guaranteed a lower rate in a short time period? 

At first, we only signed a 3-month lease with them until they figured out the next steps, but now they are needing to extend a full 12 months (approved by insurance). 

I get my increase sooner and lock them in for a fresh 12 month period. 

Still probably won't pull the trigger---hurricanes can really kill your cash flow for very long periods...but will think about it.  

I was originally looking at Indian rocks beach but have extended my search to Seminole (both zoned for STR).

And you won't immediately give up 40% of your profit in taxes.Simply keep repeating this process with one addition - periodically (when you have a good reason) you will sell one of your rentals and using a 1031 exchange, purchase 1 or two new properties to again BRRRR. 

I would keep offering solutions to the city and see if you can have an extended face to face with multiple options for you to move forward. 

You might consider starting with a trial period to assess their services and see if they align with your goals.

Have a legal advisor or counsel review your documents before signing.These will make your ultimate exit strategy, post Hard Money financing period, much easier when: - preparing & submitting paperwork for individual tax returns - maintaining the note in good stating with consistent payments & digital payment history paper trail - digital and/or easy access to documentation - preparing for a Re-Fi, Conventional financing, payoff, or even Flip/Sale & deed/title reconveyance to remove the Hard Money Lein holider at the end of the note's term