.- Unrecaptured falls under section 1250 and is treated as ordinary gains and capped at 25%- My capital gain from appreciation and improvements under section 1231 was treated as a long term capital gain since I owned both assets over a year.Hope this helps.

But I would urge planners to consider that the Sec 263 regs they rely upon for the justification for not expensing remodeling costs is actually an exclusion section which prohibits deductions under pspecified circumstances that being that the amount was: "paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate."

As others have said, the best thing your son can do is run far from this deal, buckle down, save his pennies (he probably already is doing this), house-hack, and improve a property with sweat, hard work, developing a DIY skillset, and self-managing tenants. 

With property insurers’ profitability and trade combined ratios improving, we can expect some relief soon.

And how can we align our approach to meet those expectations and improve our chances of securing financing?  

I would focus on improving your credit and obtaining a more stable income so that conventional financing is an option. 

Many municipalities allow appeals, and the savings can be substantial if successful.Pro Tip: Work with a tax advisor or attorney familiar with local property tax laws to improve your chances of winning an appeal.2.

The biggest issue with Stessa is that it sounded like they had very low transfer maximums(making it difficult to pay people) but it looks like they've improved a little bit on that.

Improvements on property you own do not qualify.2.

What drew me to Detroit initially was the potential for strong cash flow, but I’ve also seen appreciation in several of my properties as the city continues to improve.