Regarding total potential loss, Umbrella is better.

Not the totals?

Total Gut renovation.  

Total renovation.

For example, if you keep the total $5,000 or less, you can write off $5,000 when you start the business.If you keep the startup total $50,000 or less, you can write off $5,000 when you start the business and then amortize the reminder over the basically 15 years.If you spend between $50,000 and $55,000, that $5,000 allowance gets phased out.A caution: You need to be solid on the Section 195 stuff.

Here’s the breakdown:Financing & Investment Details: Total Project Cost: $750,000 Purchase Price: $450,000 Rehab Cost: $300,000 Total Investment Needed: $750,000 Private Money Loan: $550,000 (1-year term at 9% interest) My Cash Investment: $200,000 Interest for Private Money Loan: $49,500 Closing Costs for Private Money Loan: $0 Closing Costs for Refinance: $27,000Total Cash in the deal:$750,000 + $49,500 + $27000 = $826,500Exit & Refinancing: ARV: $900,000 After renovation, I refinance at a new loan of ~$675,000.

@Marc HardyI know nothing about your market, but here are some general thoughts:- rent of $2600 is very low for 3 units and a total of 7 BR. 

This is a total of 12 years, 3 of which (25%) were renting.

Purchase price: $150,000 Cash invested: $182,000 BRRRR SFH and fourplex, five total doors.

Totally open to out of state investing.