There are also tax considerations, such as depreciation and IRS Section 121 Exclusion like you mentioned. 

(Your mileage may vary)Prior to finalizing a lease agreement, I am considering presenting tenants with two rental price options for consideration:1) Inclusion of renter's insurance within the lease terms, with the option for tenants who decline coverage to pay slightly higher rent (wherein the associated premium cost is included in the monthly rental amount without the tenant's explicit knowledge).2) Inclusion of renter's insurance within the lease terms, with the option for tenants who obtain coverage to receive a slight discount on their rental rate equivalent to the cost of their renter's insurance premium.Optimistically, the second approach aims to incentivize continuous coverage for the tenant through a comprehensive renter's insurance strategy.

Hi,My family and I are looking at REI with a focus right now on FL, CA, or AZ, with other considerations in the mix. 

What are the considerations?

Beyond controlling moisture, relocating utilities, opening up egress and ensuring you have proper heights are going to be your other big costs.

Know that there is still robust demand for Austin housing and that prices are still considerably higher than just a few years ago.

Definitely a consideration when thinking about the reality of refinancing. 

@Michelle P Stafford, Any type of calculation of rent that includes a consideration of what principle they would have paid if they bought it, or corresponds to a payment amount of a loan could be considered an equitable interest in the real estate. 

Are there any tax implications or other considerations if we use this loan for our personal home project?

After moving out it would be cash flowing negatively around -$1,200/month before taking into consideration capex, maintenance, etc. but while living there and renovating the unit we will have gained approximately $125,000 in equity.Property #2: 3-bedroom unit with a separate basement entrance that could be converted into a 1-bedroom basement apartment, but in a slightly less appreciating neighborhood.