The canceling tenant remains responsible for rent, utilities, and other charges until a replacement takes over.

Here are the key numbers:Potential purchase price: Mid-$400k rangeAppraised value: Estimated at ~$500kRehabbed comparable properties (comps): ~$580-600kMonthly PITI (with 5% down, including mortgage insurance): ~$3400First-year PITI (with 2-1 buydown): ~$2900Monthly income (after taxes): ~4-5kLiving expenses (utilities, groceries, etc.): ~$1600Savings available: ~15-20% of the purchase priceCash to close: ~$34kRehab estimate: ~$34kRemaining reserves: ~$20-25kTo fully fund the rehab, I’d need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income.

With the fires, labor and materials are going to be in short supply.

I utilized those funds to purchase 18 rental units.

Renting at FMV ensures the property qualifies as an investment while preserving its long-term utility for your portfolio.This post does not create a CPA-Client relationship.

I have a 10x8 shed that I use exclusively to store real estate materials and supplies.

The only item I would suggest is double check the payment terms of the your HELOC... in particular, can you pay interest only or are you required to pay a portion of principle each month on the amount utilized.

At the end of the project's life the land must be restored to a natural state and the materials must be recycled if possible, eg. stripping out metal, etc. 

Outcome currently is a rented basement for $1,350 a month + $130 in utilities while I live in the upstairs unit.

What is the flooring material?