Hi Nicholas,When thinking about taxes and deductions for your real estate business, according to the last IRS info I saw, you cannot deduct improvements or upgrades.  

The market rent puts all three together at approximately $2900 monthly.Now here are the details and costs behind the acquisition:Property taxes: $5000 yearlyInsurance estimate for all three: $3,300 yearlyC-class properties (not best location, their condition is about average - older properties)Purchase price: $250,000k$15k down and $235k seller financed at 6% interest for 30 years. 5-year PPP. 

You have to remember you make your money when you buy the house .

The original owner has a ton of exemptions so she only pays $400/ year on property taxes.

@Trey Campagna without knowing much about your situation I'd say the first thing to do is to use a VA loan to buy a primary residence with as little money down as possible and the lowest interest rate available.

Looking for some creative advice that hopefully minimizes the tax bite.My business partner and I own two houses free and clear in our LLC.

Here's a few thoughts- On the math side you know you will take a 35% hit if you sell but how upside down will you be if you spend the money to finish the rehab?  

I believe we will continue to see this increase as more tech and energy jobs move into the area.There is a reason so much money is being pumped into the area.

There was also a tax advantage in that I would deduct the HELOC expenses. 

In the past 2 years, I have used my extra money to pay off student loans by interest rate.