When you create an operating agreement there are some limits to what you can do but you could allocate him all depreciation in any given year and it would hold up as long as your agreements met the substantial economic effect rules. 

A trick I use is I walk around my house and start pointing things out that need improvement then speaking out loud to convince myself why I need to do XYZ with it (fix/paint/replace).

Credit Karma helps break down the areas of improvement too.

@Stephen MenkeYou absolutely may not do this.IRS rules for IRA plans prohibit any kind of self-dealing.   

You can probably rule out a hard-money lender as they'll want to be able to own the property if you default and if the current owner has a $400K stake, that may complicate that. 

The place is in ok condition but might need some updated paint, but otherwise it's in decent condition, so I might not even need to improve it or anything.

@Yan GuoBase it off his income of 1500 a month . 3x rule..

Raise the rent on the six🤔😁😀😊🤗😅You better check if 6 unrelated is even allowable under county rules. 

I never heard of tax lien getting reduced unless lien holder is municipalities itself and new owner will be making improvement to brighten the neighborhood.If property is located in New Jersey let me know I can help you find out who is the lien holder. 

You can have 1 VLB home loan, 1 VLB land loan and 1 VLB home improvement loan at the same time.