If converted into a rental property, renovation costs can be capitalized for depreciation deductions.Good Luck!

The seller converted one of the garages into a bonus room and it added 300sqft under AC.

To be clear, we inherited the house, but there is a complication that prevents us from being able to sell it for a few years, but we will eventually sell.

We have a property there that we are in process of converting to a STR.

Purchase price: $179,000 Cash invested: $15,000 Lived in the property for 1 year.Knocked down living room wall, replaced Hvac, floors and gutted and remodeled the kitchen, attic insulation, converted the living room and the dining area into rooms.

What do you mean by convert?

One small problem I found in most rental units that eventually there would be a small leak under the sinks.

My husband and I both work stable W-2 jobs (he’s in trucking), and our goal is to eventually transition to real estate full-time.

My neighbor did this during one those programs (had a 2 family, made into a legal 3 family by converting the basement) but, among other things, he had to install a fire suppression system in the basement, expand windows for egress/ingress purposes, and do a whole bunch of other things.

@Pete Harper - a 721 UPREIT is essentially converting your interest in a property into operating units of a REIT.