Among the other repairs that an FHA 203k will cover: decks, patios, bathroom and kitchen remodels, flooring, plumbing, new siding, additions to the home such as a second story, and heating and air conditioning systems.

So the total ROI considering both the invested and uninvested cash is only 27%.All that money is taxable at your ordinary rates.

Also, you have to take into account that you won't be able to take deductions of the rental portion of the property towards your ordinary income.

What I'm contemplating is to withdraw funds from my ordinary IRA; I won't have to pay taxes if I replace them within 60 days.    

Took some notes:Gutter - front and back had small section hanging off.Roof - good conditionSiding - good conditionFront Patio - Needs paint, is wood deck built over concrete stepsBack Fence, Side Fence - Chain link with sections brokenTree stumps - 3 eventually need removalside window - taped over crack needs replacement (I don't think repair is possible on this)Bottom windows (2) new suggests they were broken 1 is sealed over with plywood&paintedThere is more, the basement carpet is wrecked.

Thanks As I understand it, short term capital gains are taxed at whatever you other income tax rate is... it's just lumped in with your ordinary income and taxed the same.   

Interesting, but I’ll have to find out if my ordinary income was reduced by depreciation, and therefore any gains will be taxed as ordinary income and not more favorable capital gains...When is bigger pockets going to form a lobby or pay a lobbyist to advocate a longer window to use 1031 exchanges??

One word: LEVERAGEI don't think an ordinary person will find many lenders that will give them money to go invest in the stock market.

Alex:Assuming you get $45K, after commissions, holding costs, and taxes you have about a $7K gain (I'm assuming gain from sale taxed at ordinary income) but also get your $31K in capital back for a total of $38K. 

If its not an active chimney we put a large patio stone on top.