Even so, making sure to control the temp is vitally important with the combination of a victorian era (poorly insulated) building in a Wisconsin winter.WI also offers landlords of low income rentals a weatherization program for older buildings that will replace appliances, windows, boilers/furnaces, and improve insulation in attics and walls.

Or, can a portion of the proceeds be kept out and taxed as a distribution?

The 203k rules limit the rehab portion of the loan to the unit that will be the owner's primary residence.

At the time of purchase and inspection there was a tenant that was leaving in the back portion and has recently moved out, and once she moved out I noticed that there was mold on the drywall in two different areas of the studio.

In other words, wealthy people already know how to avoid taxes and tax breaks aren't as impactful to them.What you say does make sense.It seems the comparison should be between the impact of the 5% cut on the middle class person's whole income (ignoring brackets), and 5% of the portion of the rich person's income which he receives as earned income, rather than 5% of his whole income.

Just getting started and I'm trying to figure out how to run the finances and accounting for rentals that I plan to buy.Do you run the expense portion as a total fund or more like a line item budget?

@Jon Klaus, there's a huge difference between simple environmentally sensitive portions of a parcel, and hillside lots in the coastal areas, where we have earthquakes!

When you've got extensive maintenance costs that go with a structure, cash on hand is vital.

Brian, The technical side of real estate (any RE) is only a very small portion of the business (10%) being able to analyze a deal is probably 1%.

This grossly distorts the true returns.What portion of overall "project yields" can be attributed to this accounting of effort or time instead of an accounting of how hard the capital is working in your estimation?