Since then, I've spent a substantial amount of time and money in remodeling the home; essentially a full rehab of the home with high end finishes, plus the addition of a full bathroom and finishing of the basement.At time of purchase, I employed a broker to help secure the mortgage.

What is considered substantial can very across towns and cities. 

Values have risen substantially so appraisals should be good for refi cashout.

But if you could use that cash from property #1 and buy another substantial positive cash flowing property #2 which would cover the additional payments + the payment for property #2, that is something you can think about.

Rent prices are pretty substantial in more basic properties here.

@Quandra Adams The spread between $0 and $3500 for closing cost, $0 to $3K for the down payment and 4 to 4.5% is substantial.

Always require WRITTEN bids from LICENSED contractors3, Always require WRITTEN comps to substantiate ARV4.

I have a 3-unit on the east side I picked up for that price two years ago, pretty similar, with 9 total bedrooms and substantially higher rents, and it's just starting to make sense.

The bid for the improvement came in higher than expected, so I offered to carry a balance  if they agreed to pay a substantial down payment and to make monthly payments on the balance.As it stands, the tenant will make a down payment of $4000 and I will pay the remainder with the tenant agreeing to pay an additional $500 per month until paid in full.My question is how will this affect my taxes for this year?

The best part of the deal was that the property's location appreciated substantially during the wait.I learned that the lawyers ( trustee's) were the hold up on my deal.