Nov 9 - Today, I spoke with @Mark Hart and he clarified the Scope of Work for the Renovation as follows:849 Avon Scope of Work - EXTERIORRoof- Wash the roof, approximately 7 years oldWindow Repair- Repair or replace any broken windows and repair all rotten woodPressure Wash- Clean dirt and other debris off of the exterior of the homeLandscape - Trim grass and shrubbery and add fresh mulchMailbox - Add a fresh coat of paintDriveway Patch- Patch all major cracks in the driveway and patio areaFence Repair- Add planks and posts on the North East side to ensure privacyIron Security Doors x 3- Iron doors to be installedRekey- All doors to the propertyElectrical Repair- Perform an inspection to ensure all outlets are in working orderInterior Paint- New paint on walls and trim where needed.

It has two unpermitted Enclosed patios, a unpermitted aluminum patio and a unpermitted fiberglass pool.  

Their request this month is for me to change the locks on the patio door to the same as the front door of the apartment.  

It seems like a great deal to get more equity in it immediately being appraised more, but just wanted to make sure that wasn't something that is way out of the ordinary. 

But no, since you make over $150k, any passive losses can’t be used to offset your ordinary income, they will carry over to future years or to when you sell.  

If you are able to implement a real estate professional status tax strategy (REP) you can use passive losses from syndication deals to lower your ordinary W2 income.

We're talking ordinary suburbs like Lakewood, Bellflower, and homes that need updating. 

Whether it is taxes and ordinary income rates or lower capital gains rates depends on how long you own the asset before you sell it.

Also, she was pretty much out of the unit yesterday but left a headboard in the patio that she said a friend is coming to get later today.

Any gain will be taxed as ordinary income at your marginal tax rate.