@Bruce C.I think there are 2 things that we should discuss here.Keeping personal and business accounts separate for limited liability purposesone of the reasons for creating an LLC is to limit your liability exposure.Commingling funds between personal/business can pierce the LLC and you can lose the purpose of the LLC.You should set up a trail that you indicated items paid from your personal account were contributions to the LLC and possibly have your business account reimburse your personal account.Another issue might be if the property isint in the deed of the LLC - if you even have protection.capturing expenses for tax timeIf you decide not to reimburse yourself - just let your accountant know what expenses you paid from your personal and business account that went towards your rental property.He will be able to properly classify it on your tax return. 

@Jim DahleGeneral partner's/managing members and the accountants who prepare the fund make the determination of how income is categorized and then passed on to it's partners/members.These partnership vehicles want to correctly classify the income.Failure to do so can result in interest, penalties from the IRS/State's.The partner's will look down on the partnership if such issues arises.If you are an LP in a fund, you simple get a K-1 and have to deal with what is provided to you on your K-1.

Make sure that it is classified as an "owner-build" project and act as your own GC. 

Could be classified incorrectly with the city and need to be re-zoned, re-assessed, etc.

I told him that the rent was going up to $550 and I encouraged him to check the classified ads for similar rentals to see what they were going for.

We will manage the property and put your rental listing in the mls and it would be syndicated to  something in the range of 2000 different web renal websites.  

Rebecca - You wrote a lot of posts regarding 203K loan and renovations.When working with an accountant have a conversation to see which costs will be eligible to be classified as a repair(immediate write off) vs an improvement which may need to be capitalized.Best of luck to you in your search for a CPA.

My area only lists 'assessed' value on the appraisers web site so 'market' is not included.

They lending institutions still classify them as residential, unless you are getting a new loan with more than 5 units total. 

The bank is still classifying the home as owner occupied even though you have evidence of it being rented for the past year?