This question is very common and sounds very straightforward: as an investor, can I deduct my real estate education?

Utilizing Kim's local market expertise, we quickly assessed the property's potential.

Utilizing Seth's local market expertise, we quickly assessed the property's potential.

The key here is to have a plan to pay that loan back.I did this by utilizing the typical BRRRR method on homes in Detroit.

Property 1: 4/3 LTRCurrent Value: $475kPurchase Price: $363kDown payment: $40k (30 year conventional)Interest Rate: 2.75%Remaining Balance: $294kMortgage payment: $2369AVG revenue: $2775Property 2: Duplex - 3/2 House Airbnb & Detached studio apt 12mo leaseCurrent Value: hopefully within $575k-$600kPurchase Price: $591k (appraised at $599k)Down payment: $30k (30 year FHA)Interest Rate: 6.125%Remaining Balance: $552kMortgage payment: $5041 (including $362 PIM)AVG monthly utilities: $385 (full year avg)AVG monthly revenue: $5261 (full year avg airbnb + $1650/month from apt)

I can see from other reviews on here this is a common problem.

Add charges for rent for the remaining months, estimated utilities, estimated cleaning and repairs and cost to re-rent (in our case: cost to PM is 1/2 a month's rent).

Common area kitchen, game room, library, and living room.

I might look into financing options for the property and utilize the HELOC for the down payment.

That said, that now that the market has softened a bit, folks wanting the work permitted is probably going to be more common so it may not be a bad thing.My final thoughts are about your hard money lender.