Paying down your principal faster is a bit counter intuitive to the REI growth phase.

However, if the property is not generating rental income during the rehab phase, these deductions might not be immediately usable.

This phases out starting next year.

Join sparefoot during your rent up phase.  

I am very familiar with the Texas market.The main concern first is that since you had a tire place on the site after you get them out you need a new phase 1 environmental on the property.

While REI is passive income for many, I'm not sure just how passive it is during the growth / acquisition phase.

Here are the numbers Purchase Price: $85,000LTV: 70%Down Payment: $25,500 (30% down payment)Rehab Loan: $20,000 (this will be received back in phases, on a draw Total Loan Amount: $79,500Hard Money Costs: Interest Only: 11.99%Points (3%): $2,385Prepaid Interest (3%) $2,385Underwriting Fee $2,995Processing Fee: $995Lender Attorney Fee: $1,730Total HML Costs: $10,490Estimated Cash to Close: Down Pmt + HML Costs = $35,490However, this didn’t include other transaction costs.

They've done phase 1 and are in phase 2. 

We are in the design phase currently and should be submitting plans to the city within the next 2 weeks. 

Short answer is, you are in the research phase, so utilitize this time to know as much as you can before you move.