To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

Also, be aware that if you are thinking of doing a BRRRR that maxing out your HELOC can have a negative impact on your credit score so when you go to do the refi you may potentially run into issues.

At $1000/month additional cash flow, it will take 12 1/2 years to recoup that money.

The promissory note and personal guaranty are private documents that don't get recorded.

My mentor did say that he has purchased them before and had the owner/ paid the owner to sign something that stated the owner did not want the property back.

Tenants that ask for these types of things are typically entitled and will take further advantage in the future if you do not curb this behavior.

Below is the backstory, I have a house under contract that I admired the remodel, got an inspection and a lot of things were wrong with that property.

We do them, but they aren't cheap and your LTV will be lower that a HELOC on a primary residence.

I know you've been doing well in Toledo and you've been potentially eyeing Detroit as well.Absolutely love your story and enthusiasm, and I know you've got a lot of knowledge and inspiration you can share with investors that are just getting started.

The reason is that there is not a huge recoup on the backend from the sale, sometimes you have to pay it off to actually get your price.