Also factor in if the rents jumped a lot and if that would lead to a vacancy, which will cost you more in the short term. 

You should only be liable for tax on any appreciation since you inherited the rental (minus the cost of your improvements). 

Typically starting with a smaller rehab budget of $50K or less (maybe a max of $75K) and avoiding a 1 to 1(or higher) ratio of purchase to rehab costs is recommend when you are first starting out. 

Unless it is a new build, and it comes with purchase warranties are an extra cost and may or may not even be executed when needed depending on the circumstances. 

I am actually under contract on a property in Columbus, OH and weighing the pros and cons of self-managing vs. property PM because I cannot seem to find a PM that seems reliable and worth the costs.

I cook my own food, can I bill myself for that and write off all my food costs? 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Hi,Just watched the latest BP podcast about cost segs and it got me thinking....What happens after depreciation runs out on your property? 

Here are my two cents...I recommend starting in a market with strong fundamentals, such as steady population growth, an influx of major corporations or large businesses relocating to the area, an affordable cost of living, and high rental demand.

Thanks Shannon  Does it cost less to go straight through WAIVO?