By investing in quality renovations, I hope to enhance the value and appeal of my home, as well as potentially lower my insurance costs.Strategic Renovations to ConsiderAddressing Four-Point Issues: I've addressed the issues that needed to be rectified before obtaining conventional financing.

@Benjamin WeinhartMy experience on this tax forum tells me that highly technical discussions of the Code/Regs nuances are not well suited for this platform.That said, my 2 cents is that this issue is a matter of interpretation.

If I could chime in to help in the search:be sure to find an accountant who is willing to grow with you, and is not too high priced fee-wise.

I would say the cost if it does become an issue could be high but that is a call you have to make. 

That's a ridiculously high insurance premium. 

I would also highly recommend you educate yourself on New York State tenant/landlord law, especially if you plan on self-managing.

The cost of eviction is really high in NYS, the cost of mismanaging an asset is even higher. 

That would piss any person off even in the high income realm.

To get accurate and up-to-date advice tailored to your situation, it's highly recommended that you consult with a qualified tax professional who can review the specific details of your syndication investment, your financial situation, and the applicable tax rules to provide accurate guidance.

Less than a week later, despite record-high interest rates, they received an all-cash $1.825M offer from a 1031 buyer and immediately accepted.