If you use the cash to pay off other debt or take a vacation, the IRS requires you to allocate interest expense based on personal use and business use.

I love this question because it's one I think of personally often as I'm allocating my own resources over time.

You’ll need to spell out how usage will be tracked, what portion is yours and what portion is tenants and how the tenants portion will be allocated to each tenant. 

As the single-family market heats up in the stronger areas, investors get pushed out by end-user buyers, forcing investors to shift to less desirable areas (with slower markets) or into syndications simply to allocate their capital and end the madness. 

I'm allocating around $3500 to turn each unit and this last unit actually resulted in almost $6,000 but it's due to the leak from upstairs, rot around the shower, and completely tearing out the tub, shower, cabinets, and floors.

You can't use the 1031 on your primary in NM ....unless it was a multi and you 'allocated' the 1031 to the additional unit(s).

So if you include reno costs on the acquisition closing statement, who are they allocated to? 

This is a job I am very passionate about and enjoy, but is also flexible and allows me to allocate time toward my other goals, like investing in real estate.

As for paying off certain debts, you'd definitely want to talk with a lender first to see where your dollars are best allocated. 

You have to allocate the the purchase price to all the four until and calculate your profit based on the allocated purchase price and sale price of each building.