We weren't undergoing a huge tear down or anything, just a basic renovation so I worry I may be overly cautious on this one.. 

So run some numbers be cautious this next year  DO NOT get locked into HML without a clear refi or resale option this is what happened last go around believe me I had over 300 loans out to folks like you  in 08 and I ended up owning about 200 cash flow homes by 2011 as the 100% leverage investor fell by the way side . 

Hello BP Community,I am a first time investor and super excited to start this new journey but I am also a VERY cautious person.  

You do need to be cautious of the areas you choose to invest in.

That's a red flag that their builder can't back up his work.I'm always cautious of companies that build, then finance, then manage.

Just Be cautious.

You're in a great starting position as a seasoned buy and hold investor with little debt but now you'll be redeploying that cash at the top of the market so encourage you to be cautious and limit your risk.Greg

Be very cautious of purchasing in this area.

I would be very cautious on the rental property-I am not convinced that rental property will not qualify for the new deduction-borrowing from Hedge Fund land -trader vs investor-it is not defined in the code and as alluded to previously trade or business under 162 goes to case law-in financial services one of the items to determine a trader-which is a better tax position (deductions not subject to AGI 2% limitation)-is regular and continuous activity-lots of trading-turning over portfolio multiple times a yearIn Real Estate World-if someone owns 6 or 7 houses and is always involved-think tenants, busted pipes, collection of rent, evictions when necessary-can you say that does not rise to the level of a trade or business-why is a grocery store any differentI have looked around and I don't see any major commentators saying rental wont qualify unless common ownership (I did see the verbiage in the proposed reg and I think there is a different reason that was put it-something about aggregating rental with non-rental activity)Bottom Line-all I am saying is lets wait and see as comments are submitted to Treasury and not rule anything in or out as far as rental properties are concerned 

I am cautiously optimistic that we can replicate everything you said in the first paragraph.