The out of state LLC is considered a foreign entity which meant additional costs & paperwork. 

@Deb L.There are many rules when it comes to writing off / capitalizing items such as improvements or repairs.Improvements may need to be capitalized unless there is an election in place that will allow you to write off the full amount in the first year.Alternatively, if there is something placed into service in the past and the item is no longer of value, you may be able to potentially write off whatever wasn't depreciated up-to that point.In general, it may be best suited to talk to a CPA to better understand your situation and give you more suited advice.

That other option would be to stick with the 25% down and decrease your cash portion and have seller pick up the rest to the equivalent amount of the asking credit.I would ask the listing broker to clarify the wording and see if this, or something similar, is what they meant.

@Brian Walters lol sorry I meant to tag @Michael Robbins on my last post.

Historically 4th quarter of election year everything gets a little goofy, people hold off on big financial decisions with uncertainty. 

@Alex Grosvenor, forgive me, that is what I meant.

I don’t need to cash out anything from current home equity. just rent and refinance to traditional as necessary and buy 2nd home with 3.5-5% down with FHA or traditional.I do have 30-40k to make up to 10% down payment for 2nd home (300-350k home) but was thinking putting down only 3-5% and keeping rest as contingency $ for not rented months unplanned repairs etc.understand what you meant by take action...just bit scared to take such a big leapOriginally posted by @Joe Villeneuve:You don't have enough equity to do a cash out refi with your existing home. 

This type of deal has low maintenance since the HOA covers big ticket exterior items and it had an existing good tenant which meant immediate cash flow at closing.

I meant that the returns on appreciation are low.

But, there is no appellate decision defining exactly what is meant by "preservation improvement."