My apologies for causing concern around this.

But not sure if I'm overlooking anything else that would cause increased scrutiny.Also, to clarify, my overall goal with the property is simply long-term wealth building through mortgage pay down and appreciation so I'm not targeting properties with very high cash flow thus the focus on tax writeoffs.

The warrantability will come up more on the back end when it comes to refinancing or selling and the rehab aspect will impact you more immediately as it may cause you to adjust some of the work that you're looking to do on the property.

In Oregon where I own most my properties, relocation fees for no-cause evictions is one months rent.

The only thing I want to know is if the rent is paid in full and on time, the house is not being damaged and they're not causing trouble.

For a project to go more than 10-20% over budget would be a lot and that should never be something that causes such a severe hardship.

The extra HELOC payment can cause negative cashflow, leading to possible foreclosure and/or bankruptcy.Should you pursue RE investing?

This in turned caused a dominion effect of other tenants wanting to leave.  

Talk w/ each tenant, work with them if necessary on an increase schedule that won't cause them a financial hardship but helps you achieve the increase.

Heaven forbid a lapse in occupancy causing you to go upside down on a deal.