Proper due diligence will reduce your risk, but it won’t eliminate it entirely.Personally, I like value-add opportunities because they build in equity from the start.

I'll refi in 12 months utilizing the built in equity plus what I earn this year to avoid a huge down payment. 

Most will recommend $1 million in equity per LLC.

We have ~$4mm in equity in the downleg and plan to leverage to $8-10mm for an upleg purchase.

Some have more than $1 million in equity while others have less.4.

Some have more than $1 million in equity while others have less.4.

It also engenders more inequity in the society when the wealthy gets more tax breaks but there is none for the poor. 

You now have $5k in unreimbursed expenses, and 2 houses; one with a $200k mortgage worth $250k (giving you $50k in equity), and; one with a paid off HELOC, value and mortgage unknown, but presumably with more than $165k in equity.You should also treat the $5k unreimbursed renovation cost as a debt and pay it back (even to yourself) accordingly.There is no tax due because not only did you not make any realized gain, but there was no sale. 

He's purchased a condo in 20214 and by 2020 it had roughly $200k in equity.

In the Reno, NV area there are some great SFH investments that are growing 10%+ in equity over the last 6 month where MF will take longer to grow in equity.