The plan for financing is to use a FHA 203k loan and finding a property that may need some minor or serious rehab to get up to a newly-emerging market standard.

.*** RANT ON ***I'm sure there are those here at BL that will take issue with my comment, but believe it or not, IEEE, W3C and web standards all predate BP and generating our own terms does not promote clarity.*** RANT OFF ***

Besides of course standard Cash and quick close factors.Thanks!

Concrete:  $75 a yard installedBrick:  $.50 per brick installedpainting:  $100-150 a room with trimexterior painting: $1800-$2500new hvac : $2300new window:  $100-$150 for standard sizes x 2 for installdrywall : $12-$18 a sheet finished (depends on finish level and size of sheets)tile: $5 a square foot installed (add material cost of between $2 and $10)basic stainless appliance package : $2500hardwood $2 a sq. foot installed $1 a sq foot to refinish (add material cost of $2 to $10)plumbing:  $100 per fixture to install and $100 per fixture rough-inelectrical: priced per outlet and per fixture for both rough-in and installTotal rewire of house:  $3K-$6Kupgrade electrical service:  $800Total replumb of house with pex (no slab): $2K - $5K10x10 set of cabinets no frills:  $2500, about 1 day for a capenter to installcountertops: $1500-2000new roof:  $5K (metal including materials)deck:  $2K-$5Kbulldozer/bocat:  $80 an hourdumptruck:  $1.50 per mileCarpenter:  $35 an hour low end + $10-$15 an hour for helpers. 2 carpenters can frame an entire house in less than a week.  

your best bet is to have one on your team, and consult with him on this matter, i am not a CPA but i believe all those improvements should have been put on your taxes the years that you had the work done, it would have increased the asset value then and kept adding as you did the projects and reported them. i think you are in for an uphill battle now. the work you may have done say 5 years ago can't just be claimed now, there is 5 years of depreciation that is against that work that the IRS will claim you lost out on, so that will have to be deducted from your numbers.

You will deduct all your expenses and depreciation to get to your net income. 

Good rehabbers that don't do in house management will generally have a close relationship a PM that they do a high volume of business with and who know the rehabbers quality and standards.

You may operate your rentals in a way that qualify you to be "in business" which then allows you to deduct expenses similar to other business owners.

That doesn't work for me because I am spending a lot of time looking at homes, establishing ARV's and repair estimates on the few that do meet the standards.

@Dakota Hicksjust my .02 save it, a big storm comes through you may have 5-10 deductibles at 2-5k a piece that's a killer.