Improve your position by trading out and up.

Here's a couple of quick add-on questions:When figuring expenses or improvements on the rental, where do overall expenses and asset purchases go - the things not applicable to just that one property? 

Based on that experience, I would go out on a limb to guess that most of the concern is a result of either the bank being uncomfortable with lending to an LP if they aren't well-versed in it and thus cannot confidently assess the risk, or (2) banks want personal guarantees from limited or general partners as the investment vehicle is generally single-purpose and would be hard to recover against.

I have learned a tremendous amount by attending events when I can, learning and gaining confidence from people that are playing the game at a level I can aspire to.

And kudos to you for plugging into the podcast already - that was a huge part of building confidence in me to start investing (and not just THINKING about investing :)I'm just down the road about 90 minutes so feel free to reach out if you have any questions along the way.

Your taxable income may be more than $15k (from capitalization of improvements, for example) or less than $15k (from depreciation or cash-out refi). 

Look for deals that need physical improvements that will allow you to increase rents and occupancy.

We may want to lower the Refinance loan amount to improve Cash Flow.  

Or what if he considers capital improvements to be “repairs” making the property look worse.

Once you have earned some money and mature a bit you may find that it is also part of the responsibility that comes along with success that may lead you to simply want to help a community maintain or improve its quality and value.