Quote from @Li Kia: Yes, these are all legitimate deductions.You are technically only permitted to charge them a depreciated value.

I also look up the property on the county website to see if there were any permits pulled for the work recently done.

Do they have the land, permits, zoning, etc. locked up for the new builds? 

A contractor will tell you anything is possible but that usually comes at additional cost and time.Challenges - We had some hiccups in the beginning of the project that got our project held up in permitting and added 2mo to our project.

(Other financing arrangements might be possible.)You can only obtain one home equity loan per year, even if you have fully paid off the prior home equity loan.Regulation of LendersTexas restricts who may lawfully issue a home equity loan.An unlicensed person is not permitted to make a home equity loan unless that individual is either related with the borrower to the second degree, or is the seller and is providing financing for the property.A home equity loan must be secured only by the home itself, and the lender may not attach the loan to any additional assets as collateral.

vacancy, repairs, capex, management, any shared utilities, any groundskeeping not done by the tenants, any permits or registration fees, etc. 

My local authorities allow STR once I get the necessary permits and business licenses.

Additionally, I own an adjacent parcel with 5 acres of coffee and have obtained permits to operate an agricultural tourism business there, with entitlements to build two more dwellings.The estate is situated within a gated community, and while it’s a remarkable property with a lot of unique features, I’ve encountered some pushback from the neighbors, which has made me reconsider my position here.

Hi Peyman Ayoubi,did you pull the permits already? 

I would just suggest you make sure you fully understand that process before you dive into it - because you can lose a lot of money fast if you don’t know all the ins and outs.Likewise, rehabbing isn’t always straight forward… like who will do the work, permits, contractors, unknown damage you may not have accounted for - especially in  a foreclosure where there usually isn’t the ability to inspect the property.We’ve done several flips we won at auction, and lost plenty of them in the bidding.