If all further work must be classified as either a "repair" or "improvement", then that would imply that there can indeed be "repairs" to a property that has not yet been rented in the eyes of the IRS. 

DependsDSCR CAN be a NonQM loan where they always disclose.If you are an experienced investor who owns and operates a business some lenders classify yours a commercial loan (the same as high rise office).

We just closed on one STR and have two more in contract.We’ve been actively investing for about 2 years and I am still running my other business, so I classify myself at stage 1.5 as a RE investor.

@Veronica Blackstone You could try posting in the classified section of BiggerPockets as well!

Please note the rules do not allow any kind of marketing or deal making outside of the classifieds forum.

How should I classify these transfers in our books?

All the improvements I am doing is going under this category (new bathroom, new plumbling, new kitchen cabinets, new tile, new flooring, appliances, etc...)I dont know how classify my labor expense.

I would recommend posting in the classified sections of BP.

After a brief search, the IRS says-For tax years 2018 through 2025, if home equity loans or lines of credit secured by your main home or second home are used to buy, build, or substantially improve the residence, interest you pay on the borrowed funds is classified as home acquisition debt and may be deductible, subject to certain dollar limitations.

DAY.I'd like to know why the Columbus Cartel isn't utilizing the Classifieds section here on BP?