I could see the sales picking up last Dec'16, when a normally slow month surprisingly increase in sales.

It could be 100% deductible at the partnership level or it could follow the partner and it would have to be determined if its deductible or not at the partner level.  

You could do a 203K, and possibly add space to the residential portion of the property to get that percentage down to 25%, but that would probably be cost prohibitive.Personally, I would look at my options and determine where the best return on the money would be.

Remember, advice you get on the internet will not count if IRS determines that you commuted prohibited transaction, but attorney's advice you can rely on. 

I picked a stucco company over a slightly cheaper bid because the cheaper guy wanted a third up front and wouldn't budge.  

It's been great, but I want to pick up a multifam next and keep growing my portfolio.

And trying to pick which one applies to my situation is even harder!

Few tenants have respect for a property they do not own.Second you need to determine if you are gong to need to put cash out of pocket to maintain the property.

If he screws up you have all materials ready to go for the next guy in line to pick up where he left off.

In my opinion, a 'complete renovation' would normally cost more then 10K per unit but then it depends on what they mean by 'complete'.There are lots of questions to ask and have answered before you can determine to move forward of not;- Statement of work (SOW) regarding work done- What is warrantied and for how longetc.Also while this is not a 'turnkey' as it seems that HW does not own the property, they are certainly intimately involved.