Cash out refi and heloc are not seeming options at this juncture since I just officially started my RE investing business, am self employed (debt/income ratio) and I'm working on improving my FICO scores. 

I tend to acquire multifamily property in markets with a compelling growth story (of course the future is uncertain but it pays to begin in the right direction), improve the property to bump the income in the front side of the investment, then monitor for the optimal exit point.  

Scenario - Purchase a building for $70,000Initial improvements $25,000New value $145,000Refinance at 75% of $145,000 = $108,750 mortgageThe problem that I am running into is that I am showing an long term asset value of $70,000 + $25,000 = $95,000 but an offsetting long term liability value of $108,750.  

As the rentals I own (and continue to build) are fairly turnkey I am confident I can deal with the few problems as they come up remotely; calling tradesmen to address issues, etc.

I'm not sure what capital improvements you can make for $8,400 a year.

It's in a very good area of the city (Miami) and I'm confident it can generate a solid return based on the asking price, however there's just one catch (There always is!)

I've read some of the forums and blog posts, and everyone's examples always seem to be slightly different than mine and I want to make sure I approach this correctly.Under SHST, can I expense the cost of an improvement (in this case, a new water heater) fully in the year it's placed into service? 

It indicates to me that the applicant has a history of making late payments or stiffing a creditor.If the property is not generating a lot of applications, I would definitely have the applicant address the 600 credit score, review credit reports to what has been going on and see if there has been any improvement in payment pattern.

Keep reading and listening and asking questions - it will all grow your confidence and make you a better investor when the time comes. 

Most successful people enjoy being alone and developing themselves through constant self improvement.