I hope I am asking the correct question:If I am purchasing and improving a flip with the following scenario, how would the interest being deducted in terms of when I capitalize on the property?

I really enjoy the science vs art part of it, seeing consumers improve over time, vs fall-back behavior.  

I'm using a hard money lender now for a flip in Northern NJ and they are lending 90% of the purchase, 100% of improvements up to 70% ARV.Adam

We continue to look for properties that fit this profile.

These freelancers can provide samples of their work on their profiles or website.

I highly recommend a profile picture! 

Account Closed   Yes, one can buy a house in San Diego for less than market value (use $450k as an example), pay to improve it and flip it for a profit ($535 maybe) or keep it as a rental ($2300 plus or minus).

The holding period of a separate element placed in service before the entire section 1250 property is finished starts on the first day of the month that the separate element is placed in service.The holding period for each separate improvement qualifying as a separate element starts on the day after the improvement is acquired or, for improvements constructed, reconstructed, or erected, the first day of the month that the improvement is placed in service.The holding period for each improvement not qualifying as a separate element takes the holding period of the basic property.

@David DeLand congrats on publicly declaring your dream.Now, get a friend to help you get your head shot on your profile.

Go to my profile page, to the right are my blogs, read "How to develop a good BS Meter" if you are the smartest guy in town, you'll figure it out.