If I bought a 3 unit apartment building with a 203k loan that needs a total rehab, would I be able to write-off the improvements on my taxes as expenses even though they were financed through the 203k loan.

Having overseen over 1,500 units I totally agree that boots on the ground, management is the make or break factor.

Generally you want to keep your total debt service to income under 39%, so keep this in mind.

And total ROI?

First, is your personal rate: NOI/Total Debt (current or future) which gives you certain metrics, and second (more important IMO) the MARKET cap rate, which tells you at what rate an investor in that area would (theoretically) make a purchase.

Oh, yeah, I forgot they are doing it out of the goodness of their hearts, pay it forward and all that.

Here are my expenses for year 1: Mortgage Rate 5.00% Length of Mortgage in years 30 Monthly Mortgage payment $3,105.78 Taxes $416.67 Sewer and Water $- Trash $- Heat/Utilities $- HOA $- Cap Ex and Ops $200.00 Insurance $266.67 Mgmt Fee $- Vacancy $207.00 Total Expenses $4,196.11 Years 2+: Mortgage Rate 5.00% Length of Mortgage in years 30 Monthly Mortgage payment $3,105.78 Taxes $416.67 Sewer and Water $- Trash $- Heat/Utilities $- HOA $- Cap Ex and Ops $200.00 Insurance $266.67 Mgmt Fee $600.00 Vacancy $360.00 Total Expenses $4,949.11

It cost me $590 total to fix the 2 breaks and have the lines bled.

The total amount of heaters I will be replacing is 9.

I understand I can't rent it out to other people because it doesn't have conforming egress windows, but if I lived in it, that would free up the totally legal unit I'm living in right now for a third tenant!