So yes, you need to set aside enough money to pay future taxes.Taxes are calculated only on your net profit - i.e. after everything is deducted, including labor & materials, holding costs, financing costs and business overhead such as marketing and driving. 

To qualify as a real estate professional, a taxpayer must meet both of the following criteria:Taxpayers perform more than 50% of services in real property trades or businesses in which they materially participate.

Hey Thomas, seasonality may be a factor but you may just need to switch it up with new marketing material as the old may have been seen before.

Under this rule, if your average stay is seven days or less and you materially participate in managing the property, you can treat it as non-passive income and potentially use tax losses (like depreciation) to offset other income.

If not, do you materially participate in the syndication or are you simply a limited partner?

Updating the interior is costing me $63,000 for demo, installation, and materials.

I own a GC company and have guys with plenty of ground up/new construction experience so I'd save labor and material costs.

If you mount the new beam below the ceiling $1500 material labor...if you put it up into the floor joists above $2500-3000 (meaning so you can't see the new beam once the ceiling on the drywall is repaired)  Figure another $65-70 per sheet of drywall needed for repairs. 

flipping is very tough right now - materials are expensive, good contractors are booked up, interest rates are high, buyers are picky. 

It’s also not as cost effective to just upgrade one unit when it’s vacant because then you lose economies of scale and in the instance of materials things may not be available over an extended period of time and you may end up with mismatched windows or something.