Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation mortgage after all of the renovation work has been completed and the certification of completion has been obtained.The loan is not re-amortized.Draw Schedule: HomeStyle program has a maximum 4 draw process.The initial draw can be up to 25% of the total project and can be for materials for the project.The final draw will be at least 10% of the total project as retainage and funds will be released upon receipt and approval of final inspection, Certificate of Completion from Appraiser, signed All Bills Paid Affidavits and Lien Waivers.Additional Draw Information: Signed Draw Request by borrower and contractorSigned All Bills Paid Affidavitreview and approve the draw request and will release funds for disbursementA check will be issued in the name of the borrower and contractor and delivered to borrower via USPSAn inspection of work to date will be performed at 50% completeFinal Draw Information: Signed Draw RequestFinal inspection/Completion Certificate will be required for release of final fundsA Title Update showing property free from lien or encumbranceGeneral Contractor’s Lien Waiver AffidavitAffidavit of Completion will review and approve the draw request and will release a check in the name of the borrower and contractor.Change Orders and Cost Overruns: Changes to the initial plan are not permitted unless prior approval.

You do not need to give a specific reason for doing this, just let them know that at the end of x month that they will no longer be able to live there....However, if this tenant has been; long term, hassle free, and prompt with their payments, maybe you need to reconsider moving them out as you may find the loss in this cash flow to put a hurt on your income.I would say a good compromise would be to see if the tenants want to upgrade to the bigger unit, where you being the kind landlord offer a "reduced" price to them.Ultimately it is your decision, but be sure that your decision is not based on emotions but rather simple dollars and sense. 

Improvements will increase your adjusted basis and reduce your potential gain when you sell, assuming not all of the gain is excluded under Sec 121.Depending on the nature of the improvements, you may qualify for non-business energy tax credits, which are better than deductions.Make sure you run what you're doing and what you plan to do by your CPA, as he/she will know all of your facts and circumstances and can properly advise you.

My main focus is to reduce my tax burden.

For small repairs like broke door knob, or leaky faucet, you could have the tenants fix them themselves since your already reducing the rent and you can appeal the county to lower your taxes because the value has gone down.

Reduced recognition of deferred gain. 3.

Also, the broker's commission you pay is considered a permissible selling expense, therefore it will reduce your overall net sales price which means you're not taxed on that amount and it does not need to be replaced for a fully tax deferred Exchange.

You should have no trouble finding qualified tenants.Some tips when looking for new tenants--make sure they walk the property before signing the lease and reduce your lease cycle to 1 year.

For rentals where the landlord pays all utilities, what strategies do you guys use to incentivize lower utility usage from your tenants and reduce your overall utility bill? 

@David Waddleton yes you can reduce the cost per square foot by doing it yourself.