The more I think about AI and data collection (especially if this data can be collected automatically) I really think the sky is the limit. it makes sense to use this new technology to automate tasks, increase efficiency and likely improve your RE portfolio. 

@Kate McDevitt Asolutely, here's a clearer breakdown with key points to help you make the best tax-smart decision in this situation:If your uncle adds you to the deed before the sale:You inherit his original cost basis ($180K plus improvements).If you sell at $700K, your taxable gain could be over $500K, depending on what improvements can be documented.You won’t qualify for the Section 121 exclusion, which allows homeowners to exclude up to $500K in capital gains (if married, filing jointly) if they lived in the property for 2 out of the last 5 years.Tax impact:Without the exclusion, your gain is taxed as a long-term capital gain, typically at 15–20% federal (plus any state tax, especially if you're in a high-tax state).This could mean a five-figure tax bill, even if your uncle gifted the proceeds.Better alternative:Let your uncle and aunt sell the property in their name and use the Section 121 exclusion to potentially eliminate all or most capital gains taxes.After the sale, they can gift you the proceeds:Up to $18,000 per person (annual exclusion) without filing.Above that, they can file a gift tax return (Form 709), which uses part of their lifetime exemption (over $13 million), so no gift tax is due in most cases.If deed transfer is unavoidable:Keep records of all capital improvements (e.g., new kitchen, HVAC) to raise your cost basis.Understand that repairs and cosmetic updates don’t count toward increasing the basis.Letting your uncle sell and then gifting the proceeds is the cleanest and most tax-efficient strategy.

Understanding IRS Section 179 is key to optimizing your tax strategy.179 lets businesses expense certain assets upfront instead of depreciating them over time.For 2025, up to $1.22M of qualified equipment and software can be expensed, but there are limits.The maximum investment threshold is $3.05M, reducing the deduction dollar-for-dollar if exceeded.Additionally, the Section 179 deduction cannot surpass your taxable business income, and some assets, like real property, generally don’t qualify unless specified as "qualified improvement property."

.- I just finished up a $14k rehab to replace flooring, improve the kitchen, make the 4th bedroom compliant, generally update, etc.

It needs some improvements.

In the meantime, it is best to prepare for when the note comes due as you are doing.One option is to find an appraiser local to you that will do an appraisal consultation and they can give you ideas as to how to improve the value of the property ahead of time. 

@Tyrone Marson I hold a Md Home Improvement license .

Liability protection, especially if you’re holding multiple properties.Partnership structuring, if you’re investing with others.Cleaner separation of finances, if you use a business bank account and separate books.What You Could Do Next:If your goal is to deduct more, consider whether you (or your spouse) can meet REPS or STR criteria in the future.Speak with a real estate-focused CPA to double-check how those reno and repair costs were categorized (repairs vs. capital improvements), and how your passive losses were handled.This post does not create a CPA-Client relationship.

My second Question, I have constantly read books on self improvement and i am actively trying to improve.

I want to improve them a bit and rent them out as much as possible.