Unless you can argue it's your actual residence you live in and they've actually broken in.  

@Shawn Gardner, do you have a detailed list of all the things you did to upgrade the home?

The apt was very old and though I kept upgrading it over time it started needing a lot of major work so sold it and bought SFRs with it.

Over half of my maintenance requests involve broken washers or dryers.  

Upper middle income SFR neighborhood.We will do minor cosmetic upgrades and perhaps test market with granite counters etc.Long term hold.

I will do some upgrading to the property as far as bathrooms and kitchens go.

If the house need things like paint and yard improvements, I would use pizza and beverages of my friends choice to fund those simple upgrades.

The dam has long broken, but the water flow pouring out may continue for decades to come.

Purchase price: $159,000 Cash invested: $11,000 Purchase Price: 159,000Financing: 20% down ConventionalClosing cost: 4,000Repairs/upgrades: 7000Total Cash invested: 42,800Mortgage/Taxes/Insurance: 780.00HOA: 70Rent: 1,500 3 year leaseCap exp: 5% (75)Maint: 5% (75)Cash flow: $528.00Cash on Cash: 15% What made you interested in investing in this type of deal?

Some of the potential pitfalls have been elaborated above, but here is a direct link to the IRS rules explaining the details:https://www.irs.gov/retirement...I understand your disappointment after your conversation with the custodian and broken expectations.