They do a private loan at 12% and are paying 7% on a HELOC The money you make in interest is taxed at ordinary income.

Make sure on the second home to.1 - Good neighborhood. 2- Three bedrooms, Two bathrooms  or larger. 3- Possible chance to ad on a extra room,,@ where patio is, or back of house?

So, when you replace something and make it bigger, better, or last longer, it’s categorized as CapEx.On the other hand, repairs are generally routine maintenance tasks that keep the property in its ordinary operating condition.

This article from Realtor.com in 2016 points out eight of the largest differences: https://www.realtor.com/news/trends/red-vs-blue-states-polit...Regardless of political affiliation, the simple truth is that more government involvement almost always results in more problems for ordinary people.

I had to have it paint it, as a result I had to have the rest of the doors painted in the unit so they all looks same color.( Most of Other doors chipped by them.)4. part of lock for my patio sliding door is missing, both the doors can’t be locked.

Operating expenses are routine and necessary costs to keep the property in its ordinary operating condition, and they are typically deductible in the year they are incurred.You also mentioned the benefits of classifying something as an operating expense versus a capital expenditure.

real estate is a great long term wealth builder, but in the short term - 1, 2, 5 years - it actually takes quite a bit of cash and investment, especially in plain, ordinary long term rentals.  

I'd just make clear private entrances, parking spaces, separate patios, etc. 

Ok so it's nothing really out of the ordinary.

-Sauna-Hot Tub-Patio/courtyard (large cement tiles on crushed bluestone with lighting, natural gas line to bbq)-Secondary patio off primary suite-Losing sq feet in the primary bedroom to enlarge the bathroom-High grade cabinets-Appliances with cabinet fronts-High end appliances (Viking/Miele instead of GE Cafe)-Outdoor shower (teak box walls with a dry well beneath the footprint)-Wiring for Cat6 to every room-Wiring for surround speakers (or including the speakers that are built into the walls)-Sonos whole-home audio system-Hardwired cameras (with on-site storage) to the exterior of the house-Smart features: thermostats are a given, but how about light fixtures, switches, aromatherapy, fans ... anything else?