How do I reimburse them for supplies and labor in a way that is still tax deferred?

I have been offered an exclusive Deal by a local "friend"/ semi-mentor in my small town.  8 standard 2/1 apartments -  Quad, duplex, duplex, 1970 Dated buildings, little neglected but liveableOwner finance: 20yr 6%rate with 20k down------------------------------------------------Total purchase 400KCurrent NOI: 41k     Cap: 10         (Tax,Ins,Maint, Util)Gross rent 4500/mth-----------------------------------------------Upgrade, Est repairs: 60k After reno: NOI: 59K   Gross rent: 6100------------------------------------------------Loan pmt: 2865/mth,    34k/yrCurrent Cash flow: 531/mth,  6,378/yrAfter reno Cash Flow: 2131/mth,  25,578/Yr-------------------------------------------------Added info- -Property line Joins with (growing) Community college-Tiny town-The Buildings are Currently "uglyish".- Current Rent is 150$- $200 behind market avg.I am very comfortable in single family homes in this town (own 18 SFH rented and performing well).

Ultimately, the decision will depend on your investment goals, preferred property type.

Depending on your exit strategy you would execute as normal to flip or Refinance after Rehab with the BRRRR Method on this type of a property. 

How much will be market and submarket and specific location dependent.  

Those numbers were something that many of us were able to pull off pre-pandemic, but it is much harder to do so now.Also, keep in mind that the “cheap houses” in the beginning can end up wiping out your cash flow with a major Cap Ex or maintenance expense.

If not paid in 5 days (will depend on local laws) it goes to the attorney.  3. 

The seller is responsible for repairs and taxes. 

If she meets ALL of your pre-determined screening criteria then it would be illegal to rent to her because of her pregnancy.

Section 8 can be tricky depending on what state/municipality you are in.