I am looking to buy some non-performing commercial notes.

I don't know CO foreclosure proceedings, but part of this also falls under Dodd-Frank and if your notes are owner occupied servicing requirements apply regardless of the status of the loan, performing or DOA.

Smart guy with a polished performance.

I havent seen any yet that have had real structural deficiencies addressed, like the one Im working on now, everything is just patched to last 2 or 3 years.There is termite damage on the sill plate down one side that was pretty obvious, but no one bothered to fix it.

They were non-cooperative and I ended up evicting them both, one at a time, and performing the renovations (and paying lawyers fees) out of my pocket, not the imagined cashflow..

WHY would a seller hand over an almost 1 million asset that is performing to someone with no down payment money or experience??

We have contracted a cadre of licensed tradesmen we know personally, and have hired a PT carpenter to perform much of the non-licensed work.Our ARV for this 3/2 should be approximately $110,000 as suggested by our Realtor.

According to persons I've talked to at REIA meetings apparently I've chosen some tough areas to focus on in real estate investing (buying and selling non-performing notes, bird dogging/wholesaling and out of state foreclosure prop owners with the intention to move into a couple flips and buy and holds by the end of this year).I can't focus on all of them at once and have decided to work the bird dogging/wholesaling and note buying at the same time for the next 2 - 3 months to determine which marketing strategies work best for finding leads and establishing relationships with banks for the states I'm interested in.I've known this person for about 10 years and he is very successful at wholesaling/foreclosure/short-sale/flipping.

I performed standard due diligence on the HOA/building looking at reserves, budget etc.

2: If I decide to rent out both the main house and this guest house within the calendar year that I perform this work, effectively converting the property to a rental property, can I deduct all this work as rental property upgrades?