I just have a lot of equity in my home from the improvements and I would like to pull that equity out and pay off the personal loan I used to help with the remodel. 

You have to purchase it and then substantially improve it to qualify. 

(adding 2 floors complete re-purpose) The builder claims that the improvements will more than make up for the poor cash flow by improving the value of the property substantially.

Assuming that the market and neighborhood where the property is located is steadily improving. 

4) Asheville may be the Air BnB capital of the southeast.

That’s how I’ve had so much success with STRs - Whenever I’m entering a new market, I just find a couple of properties in that market that are crushing it, and I copy them (while also finding 1 or 2 ways to improve upon their offerings as well)

He should have talked to you about bonus depreciation and how to categorize your expenses and improvements during renovation. 

The whole northeast part of town doesn’t have a lot of promise of improving.

Hopefully a few people will read this and take steps to improve their work practices.

We were just recently able to remove the PMI because we reached 20% equity through making home improvements ourselves.