If you want to start before the house is finished, consider a bridge loan for short-term financing or explore hard money lenders for quicker access to capital. 

Since you started renting the property on December 1, 2023, you can only deduct expenses like utilities, insurance, and repairs from that date onward.Any expenses before that date (like remodeling) are considered capital improvements and must be depreciated over time, not deducted immediately.

It's hard to argue this isn't a betterment to the property, thus subject to capitalization.

Which of course also means people with access to low cost capital already. 

Have 50k depreciation and sell for 200k, you get taxed on the gain of 150k. 50k@25% for depreciation recapture and 100k@15% for capital gains. 

To that end I am raising capital to start BRRRR type investing in multifamily homes.

Hey there,I'm interested in utilizing private money lending for financing while I save up to use my own capital along with Hard Money Lending.

At what point does accepting capital, using the capital in private lending, and paying interest on the capital become a security?

There is capital appreciation.

@Josh Aljets: you have all your answers.To summarize, in my experiences being in a "high cashflow" market of Cincinnati:Major deferred maintenance/immediate capital needs.