Due Diligence- Probably need to do a Phase 1/2/3 epa study or you will be taking on the cleanup risk.5. 

Study the market.

Study and understand the SEC rules for accredited investors and 506 (b) or (c) rules from their website.  

The three most common approaches include:Cost approach: An estimate of the replacement cost less depreciationIncome approach: Calculation of estimated potential rental incomeSales approach: Uses comps of recent transactions on similar propertiesBe sure you are leveraging the tax incentives availableIdentify any applicable tax incentives available for commercial properties - historic tax credits in certain areas, opportunity zones, environmental sustainability, etc.Understand available tax deductions, credits, and rebates - Tax deductions decrease the taxable value of a property, tax credits directly reduce your tax liability dollar for dollar and tax rebates are a refund of taxes paid under certain conditions.Utilize a cost segregation study - Cost segregation allows you to reclassify assets into categories with shorter useful lives, therefore accelerating depreciation and creating tax savings.Leverage energy incentives and deductions - Look into the Section 179D deduction and how you can save on tax by meeting certain standards to make your property more environmentally friendly.Best practices for commercial real estate owners and monitoring their property tax regulations:Plan proactivelyWork with a professional to receive guidance on complex regulationsUtilize specialized software tools to drive efficiency and compliance.What questions do you have regarding property tax valuations?

@Chelsie Hall In order to utilize cost segregation in your depreciation calculation, you would need to have a cost segregation study performed.

They use their case studies to sell you, but all houses/locations aren't going to produce those same results. 

@Jeff S.You will probably end up right around the same place… lots of studies on returns of real estate vs stocks and the returns are almost identicalWhere real estate investors of course can increase it is if they are more active in investing

For tax purposes, you might get a big tax advantage to buying a house and doing the remodel and a Cost Segregation Study. 

For a property with $101k income, it might be worthwhile upon purchase to do a cost segregation study so that you can front load the depreciation.

When I studied Econ in college, we used an average 3.1% inflation rate as an assumption.