It's more specific than this breakdown, but basically rehabbing a bathroom (think attached/modified structure) would be a capital improvement deducted over time, but something like the cost of the toilet would be deductible this year as 'ordinary'  and therefore maintenance. 

Then, since I couldn't the part to repair it for 2 weeks, I had to message every guest who was coming in and either give them a discount, cancel their reservation, or try and reschedule to another date.

He has offered to sell us a vacant lot at a huge discount to help us get started (he paid $10K and is willing to sell it to us for $25K - will be worth $100K+ once water/sewer is run to it).

Purchase price: $75,000 Cash invested: $25,000 Bought the house in ok conditions.I fixed the garage, added a bathroom in the basement, and made it into a 4bed 2 bath.The basement is also ready for the bigger renovation I will do before I sell it.For now it a great rental.

Purchase price: $75,000 Cash invested: $25,000 Bought the house in ok conditions.I fixed the garage, added a bathroom in the basement, and made it into a 4bed 2 bath.The basement is also ready for the bigger renovation I will do before I sell it.For now it a great rental.

If they sell it to you at a substantial discount, you might have to pay taxes if they decided some of it was a "gift". 

There’s even a special version for wet places like bathrooms, laundry rooms, etc.

Quick introduction: I'm coming off my first investment, a deal where I'm househacking a 4 bedroom, 2.5 bathroom townhome in San Jose, CA.

I wasn't leaving the bathroom and kitchen fixtures in the same exact place, this is what caused me to have to get architect stamped drawings.

I'm envisioning putting in $25k worth of materials, which would give me new floors, new bathroom, new kitchen, expanded rear deck, drywall in almost the entire house, and updating HVAC and plumbing - this doesn't include my labor of course, but I work remotely, and July through October is my slow season, so it kinda falls into the perfect "pack the dog & your tools and go up to the house for 2-3 weeks to get some work done" calendar for me.