I'm not saying you should do this on purpose in a pre-meditated fashion, but if it happens that way, then so be it ...

You can see how it categorizes various Income/Expenses, and may give you a better idea of how and where things go for tax purposes, and how it all rolls up to your 1040.

In pulling a permit to replace such a system it would raise a red flag for a city official to inspect the entire home when the job is to be inspected for approval and can open a can of worms for further work to be done for code purposes.

They are a great source of information and help.For your BRRRR Refinance planning purposes you need to try and keep your all-in costs (Purchase price, Rehab costs, Closing and Holding costs) to no more than 70% of your ARV.  

Class II property is all property owned, used and occupied by the owner exclusively for residential purposes and farms used and occupied by their owners or bona fide tenants.Class III & IV are all real and personal property exclusive of class I and II situated outside a municipality (class III) or within a municipality (class IV), rental and vacant, that is not used and occupied by the owner."

@Keeton Byerly  maybe the homes listed for 35k are really worth 50k... remember in those price points most are bought for rental purposes so the value is usually only what an investor is willing to pay for a given cash flow or ( gross rent)... in my scenario I am building a new 650k home... so I back into it a little different.. how much is it going to cost to build .. how much carrying cost. sales cost and what then can I pay for the lot and still make the profit margin that I like to make being a infill builder and the risk we take with new construction..

He promotes it so much on the Podcast I feel like I have to!

A single entity LLC not choosing to be taxed as a partnership so not filing a tax return is a disregarded entity for 1031 purposes.  

I meant conventional loan but for investment purpose.

If you don't have a license at all I would get one from your city today as this will help you in the future for lending purposes.