After setting the stage and injecting your real knowledge of conventional RE transactions, not some wild idea thing, you can spring your proposal.

Maybe you can personally inject the $89,000 into the project even though it is not in the budget.

Now, lets say you have some buy and holds in your portfolio (which it sounds like you might) and those holds have equity in them, you can pull cash out and use that for your 15% injection.  

This will allow the constant injection of capital into your company while also allowing you to buy rentals, which is the end goal.

If getting another $100k in cash unlocks a large flip profit to keep scaling/injecting capital into your business or a great cash-flowing property that outweighs the increased capital cost on the triplex, then go for it.  

The solution coming out of the GFC in 2009 (massive debt injections), won't work now.. that's exhausted - and the bond markets are telling us this.Here is a link to a recent great podcast by the brilliant Dr.

So basically my live-in providers would do the cooking, cleaning, providing medications (which includes injections).Was just hoping that someone might be able to answer my question that if there were changes to Medicaid or Medicare similar to these last two healthcare bills proposed would that make starting this type of business more risky?

Ok just a business point here.You are doing a 3 million dollar deal.You are injecting $500k of your own (from whatever source) into the deal.You are expecting payment(s) back on the cash injected.You are asking for tax personal planning advice over the internet for this deal.You might be better served by having a Real Estate Tax pro go over your entire tax situation and make some recommendations.Cost maybe $500, maybe $800 maybe more for comprehensive tax planning advice (maybe less).Might be worth exploring the cost/benefit of it--this is pretty big money after all.Good Luck!

@Justin Mathews, if the rent differential is not that big with a renovated/nicer space, make sure you only inject as little capital as possible.

It does seem a bit overhyped but I'm also wondering if current owners of these underwater properties are looking for an injection of capital.