I look forward to learning and gaining knowledge. 

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. 

For instance, if you tell me the entire $100K is going to be needed in 2 years to be the down payment on your primary residence", I'm going to advise a different investment type than if you tell me "the money only needs to return me an annualized 8% gain, I don't need the money for at least a decade, and I want zero management or oversight."

If you are lucky, it will cover all your costs related to the property (bank rate etc.).In Germany, real estate is a long term investment where usually the biggest gains (depending on region) come from appreciation.

@Wilson Pereira  I think it might be to his benefit if you set up more than one trust but what is the gain if most of your property is joint?  

They may provide for a better interest rate than other available forms of credit, and may provide a tax benefit to the borrower.However, borrowers should keep in mind that home equity loans carry some disadvantages.Before you take out a home equity loan, consider the following:Risk of Foreclosure: Your home is probably your most valuable asset.

The more Inexperienced an investor is the more they will want to see the property before they ever offer on it.There is no right or wrong way, but as time becomes more valuable, investors make more offers than walk throughs. 

That's 50% of the gain by the way, not the sales price.

The other legal complaints are worse and not so obvious.Do the right thing and don’t deceive people regarding their most valuable asset.

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