The $100k invested to built the ADU is a capital improvement and cannot be deducted in one year.

I am 2 conventional bank loans in and I don't mind doing it this way.

@Mike DawsonBOI needs to know the owner of the entity so yes it’s you who has to file and provide your id if you own the LLCThe common misconception with Wyoming LLC’s is people think they are hidden it if you do real estate most forget that if you sell a property or get a loan, that document is recorded and your name is all over it - so it’s super simple to find out who owns it.

A lot of times this will trigger acceleration clause, so depending on your loan it may or may not be possible.4.

These improvements modernized the property and enhanced its market appeal.

We ended up going the HELOC route on that property for a few reasons. 1) the interest at the time was only 5%, which although seemed high, didn't matter too much with our potential property showing a 18% ROI 2) we leveraged a second home loan with 10% down for that new property, so our HELOC withdrawal was relatively small compared to what would be needed for a traditional loan on a rental. 3) I dont think I will see the rates in the 2% again in my lifetime, so figured I should hold on to that "free money" instead of selling it. 

Following Lifestyles practices we improved our single family investing, started investing passively in multifamily, and now are syndicators of three apartments. 

These improvements modernized the property and enhanced its market appeal.

Thank you, I mean if one gets a loan to buy a home and rents it out so the renters can pay the mortgage while the investor keeps on buying homes but all are loans not purchased in cash, exactly when will the investor see a profit , seems like it will be a while.

$370k capital raise with a bridge loan How did you add value to the deal?