I want to ask them to send us some proof that they apply for unemployment, so we can confirm that they really lost job and we should give them some break.

See below for rental, new build, and renovation analysis and let me know your thoughts...Rental Analysis: One option is to rent it out while we decide whether to renovate or knock down and build new, we would break even after 6.5 years, this would obviously require re-negotiating the balloon payment timeline.

It can be very hard to break into unless you have an airline connection.  

Then deduct 10% ($160) for vacancy, and 10% ($160) for maintenance and I'm basically breaking even.Are my calculations just totally off? 

You may take care of this when you live there, but you should assume you'll be paying once you move out.I bet you just about break even on this property (after you move out).

At the very least, you need builder's risk, fire, and liability coverage.What's your plan if someone slips and falls on the site, or if someone breaks in and damages/takes materials or tools, etc? 

Im a week into my first BRRRR on a fourplex and just got a call from the police that they caught a guy breaking into my fourplex.  

Depending on how bad is the foundation state (how many inches you have to correct), is very possible the sewer line will disconnect/break in the horizontal portions.

If the cost is say $1500 then it will take 30 months for you to break even and actually start getting the benefit of the refi.

I still have some work work to do before I can get it in good enough condition for it to cash flow, right now if I were to rent it I would most likely break even (I bought this place before doing the calculations, and discovering BP)My question is this:Am I able to tax deduct expenses I use to get this place upgrade, since I PLAN on making it a rental property?