A furnace filter is an expendable part that may be expensed.The nature of expenses are usually those that have a short life, are expendable, used and thrown away like a mop head and cleaning supplies, office supplies.Insurance is an expense in holding a property from day one, it is not part of the property, nor are taxes or HOA fees, your city license.These differences are found in Financial Accounting Standards Board (FASB) rulings with respect to generally accepted accounting practices (GAAP) as well as the Code setting schedules.

There was a need for an EAT to hold title to the replacement property over the period of time from the closing of the relinquished property until all the remaining funds  were expended in improvements.   

You can also seek additional amounts for repairs and interest on the funds expended.

The main area being revamped is hard to find unless you already know where you're going and it's really out of the way for most of the people with significant expendable income.  

That adventure almost brought our union to the brink, but that a whole different story.It took as almost a year to finish the project expending the house by 800 sq/ft adding bathroom to the master bed room, a den, a foyer and converting the garage into a loft with a full bathroom and a kitchen.Renting was fast. $500 a month (That very unit is pulling $1,300 this days)but the mortgage also ballooned.My late wife and I always wanted to expend our real estate venture, but we never acted on it because we never looked beyond Los Angeles area which we couldn't afford and that was our mistake.In 1998 We decided to expend our rental even more.

@Vince Lawrence - Welcome to the vibrant BP community.My theory is that if you have a compelling deal that buyers will die for, then, I guarantee that you will have more buyers than you can handle.From this rock star deal, you will be able to build your buyers list comfortably without expending too much energy to search for them.The bottom line is that if you bring a great deal to the table, it sells itself.Good luck with your REI activities. 

Providing specific information is unecessary to pass along principles and concepts.Personally, I learned to establish some healthy boundaries in this area and I don't share the really good ideas with just anybody, in part because I had to expend time, money and energy to learn, and because I've learned the hard way that people don't appreciate information unless they are in the right environment and have invested something into it.

It's hard to keep that fact straight when you are expending time, money and mental/emotional energy (because, let's face it, when we think we have a deal, we get excited!

Whether you chose to expend all of your proceeds at once or utilize the 1/3 rule as I call it. 1/3 of all net to you, 1/3 to your business (reinvest) and 1/3 for the future (passive income) buy and hold property (retirement fund).    

Set to close at the end of this month and want to expend cash on rehab where most ROI will result.