This could involve making the tub safe and usable without a full renovation.

meant to say we have two financial regime right.the last 12 years are the cheap money regime, so buying real asset risk/reward is almost no brainer than holding cash, good to become borrower for asset that's appreciating (10%) lolbut in the last 12 months we moved to expensive money regime where holding cash itself is producing money with almost no risk, while doing business including real estate is having higher risk (compare to cheap money regime).

She is the only real estate investor there,  but you have to take into consideration that she is fully aware of the low success rate of their program and that she is there to keep the engine going for their educational business, which is the real nature of their business, making money on the program. 

You'd want to report this activity on Sch C instead since it's a different type of business activity.

I would suggest working with a real estate-focused accountant, as they are more involved in these sorts of specifics.

Remember to back it out as a business expense too which should make the real rate a point or two lower depending on your tax bracket.2) For securing loans, I incorporate the value stated on balance sheets within my personal financial statements.

That would fill in the daytime and nighttime traffic and keep the building busy which would attract higher paying tenants for all of the other suites.A mural is a part of the plan.

Guys I read a couple great posts here about HELOC for self employed businesses were there are many write offs to show an income on a tax return.  

Just a little confused on how to start this process of involving others into our plans.

It's also essential to stress-test assumptions, ensuring the deal can withstand tough scenarios.Using models or spreadsheets streamlines the process, but mastering underwriting takes time and experience, evolving with market changes.In short, underwriting involves dissecting financials, considering market trends, and stress-testing assumptions.