@Michael Evans LillYou cannot deduct it, unless the HELOC was used to fund remodeling of your home or fund a business project, like buying an investment property.This may not really be a loss though.

The project began in December and wasn't finished until January. 

I wouldn't be so sure that your existing investor base wouldn't want some exposure to these projects as well.

PMs (that don’t *need* the revenue)will likely just pass on managing a $45K duplex.Maybe, most of all, I’d wonder about your projections.

Even if you don't need to replace these things now,  you need to account for the bigger costs that you will incur in the mid-term and how those will impact your overall returns.Sounds like you're looking for something to hold long-term and rent out, rather than flip, so it's about how low the seller will go (or what they will fix themselves) and what your projected rents and expenses look like. 

Hello everyone.I am looking for any rehabbers currently working on a project in Deanwood, DC 20019.I have an idea for a social media documentary that I would like to discuss with you.Please shoot me a PM if interested in talking about it.Thanks!

If I can't pull it when prices drop, then this long term strategy will need to be replaced with a more immediate project.  

I do have help on the project as well. 

@Andrew PostellYou mentioned the difficulty in finding a lender who would work a VA loan for a multifamily construction project. 

I would make sure to have clear expectations in writing for both you and your brother to reference during the course of the project.