The other is end of service life items such as the roof that would have to be capitalized aka Depreciated rather than written off as an expense immediately.

I had to build fences along my driveway accessing a drive under garage, because the retaining wall was more than 30" tall (standard building code item) but these properties were built in the 40s/50s and never had a fence there until I rented Section 8 and they required it.From a tenant perspective, I never had any of the issues James notes.

After the must-pay items are handled, then I will apply remaining funds towards rent, late fees, etc.

This got me thinking there are probably other items we need to upgrade in a mountain STR.So here's my question for those with experience in the area: What other items or upgrades do I need in a mountain home STR that are not obvious to a newbie/city dweller?

Repairing water damage and fixing broken items is the bear minimum for a landlord.

The former developer already had them set, but never developed.Several utility items to do are Water and Sewer along the front road. 

Are there any large capex items you are expecting? 

Make sure the deposits are transferred and not deducted from purchase price, otherwise you will need to come out of pocket when tenants move out.You should also make tenants and landlord sign an estoppel agreement, which outlines important items and agreed to, so the tenant cannot claim to have a huge deposit later or claim that the prior owner gave him ownership of the shed in the backyard.

Serious injury or death has occurred from each of these items, and they could have been prevented by keeping watch and staying on top of things.

It involves using Section 179 or bonus depreciation, and I would not DIY this project, as distinction between repairs and capital improvements is one of the most confusing areas of the tax law.And no, you do not need a cost segregation study to deduct these components of your rehab - if you have itemized invoices and receipts.Myth 8: for a valid 1031 exchange, I must exchange STR for another STRNo, you don't.