It was affordable, in a great location, and small enough to improve/furnish on a budget.

Be it adjusting the purchase price, improving the ARV, changing the financing, etc.

- If I want to make any improvements / renovations to the property and have to get permits, could those trigger inspections then a tear down? 

This would cover money for down payments, closing costs, vacancies, and improvements.

@blaine Moore - I'm a big fan of it, bought it on a Black Friday sale and I've noticed a large improvement in my productivity in the last 2 months.

My cash offer of 124K was not acceptable to him, so I said, if you will give me an Option to purchase for 6 months at 150K and I can do any improvements I choose at my expense, I will get it sold and my profit will be the spread.

I like to improve the property if I can. 

I should have just refinanced to fund my second home improvements.

We also have no land transfer tax, or rent control, which is a big advantage in multifamily (5+ units), as you can improve the property, raise rents to market value with only 3 months notice, and suddenly the building is worth exponentially more.

Yes, the depreciation was calculated for 80% improvements value.