In 2023 we also had a major repair take place.

The people maliciously destroyed the property.Maintenance costs are much higher due to the tenant knowing that any damage they do, the owner will be forced to repair due to the inspections.

The property owners will be asking $170k, but it needs an estimated $60-80k in repairs.

If you mount the new beam below the ceiling $1500 material labor...if you put it up into the floor joists above $2500-3000 (meaning so you can't see the new beam once the ceiling on the drywall is repaired)  Figure another $65-70 per sheet of drywall needed for repairs. 

@Brad Neihardt For depreciation, you use the cost basis of the property, not the after-repair value (ARV).

Its an LLC so I probably wont be able to make them pay for the roof repair, right?

Same with cost of utilities, and cost of repairs/maintenance. 

maybe some light repairs after the tenant moves in...so your first few years are typically stabilization, and you investing into the property. 

If you use insurance to make ordinary repairs, it will eventually drive up costs.

Initially, I underestimated expenses such as property management fees, maintenance costs, and unexpected repairs.