But I do like the concept.

This is a really interesting concept.

And I'm not sure why you single out your flooring because the concept applies across the board.In your particular example, you spent $3,500 on flooring, and $500 has been depreciated.

Many investors are familiar with the concept of cost segregation studies and may have even had studies performed on their properties.

Thanks Zach, I actually like your concept a lot, I have two young boys, a new daughter born November, my wife and I are realtors and I really wanna focus my time scaling our RE business for the next few years so a hands off approach for building my portfolio is very intriguing.  

My advice for you (and my future self) so far is:- be very detailed about underwriting your deal- add at least 30% to what you think your rehab will cost (even if this figure came from a GC)- have a really detailed design concept before work starts (including fixtures/trim/color scheme/etc)- check with your city/township's building department and see what permits you need up front- have more than one exit strategy- add a few weeks/months to your projected timeline- purchase cash if at all possible- build relationships, take notes, and learn lessons along the way- have funGood luck! 

You're just using new debt to pay off old debt (which is the same concept as your alternative: refinancing your primary to pay off the HELOC).

Buyers are reading concepts on investing that we haven't seen in years or decades like in Rich Dad Poor Dad. 

Prime locations and experiential retail concepts are likely to outperform in the coming years.Full Market Report 

The definition of a “trade or business” comes from common law, where the concepts have been developed and refined by the courts over time.