Thanks ladies - I've set up an apptment with a financial adviser but I want to know as much as possible before that IYKWIM.

Yep, it's already an interest free loan. So you reckon I can only claim the difference between the interest we pay and the rent we receive? Hmmm, that puts a slightly different complexion on things.

I'd do the renos after we move out but before tenants move in. We can afford to have it vacant for a couple of months if need be. Not ideal but doable. The sorts of things we're looking at doing are: fixing roof (has a leak), new kitchen, repainting hallway (is discoloured because of leaky roof), BIRs in second bedroom because that's usually a biggie for renters.