Here I am as a Bookkeeping Professional and Real Estate Investor now and I have a Mechanical Engineering degree to further make your point.  

We do it by providing the new buyers with peace of mind… brand new structures, brand new mechanicals, and brand new kitchen and bathrooms.

Mechanical updates include all new electrical wiring, and updated plumbing.

Mechanical updates include all new electrical wiring, and updated plumbing.

@Ian PlockyI'm going for Mechanical Engineering.

Because this is my biggest project to date, I am hoping someone with more experience can review my plan on this building and let me know what you would do differently - mostly with to rehab or not to rehab before tenants.We are replacing some needed items for sure -roof, some HVAC, windows and other mechanicals.

These were the biggest issues on a long list of others including many of the appliances not working and mechanicals way past their lifespan.

Once you buy one, you'll probably buy more.Some suggestions:1) Us Quickbooks and set up Classes for each property and subclasses for each unit. 2) Scan EVERYTHING to either Google Drive or Dropbox. 3) Create a consistent folder-tree convention, example:   Main_123 (property address with street name first)   -General Property Info   --Insurance   --Property Taxes   --Title Docs   --LLC DOcs   --Purchase Docs   --Loan Docs-Utilities-Maintenance-Leases   --Folder (LastName_FirstInitial)-Advertising-Rental License-InspectionsAppliances & Mechanicals (pics, model tags, warranties, etc)4) Create list of consistent naming conventions for files so you don't have to open themExample: yyyy-mm-dd Main_123 Water Bill mm-dd to mm-dd $xx.xx               Lease Main_W_123_#unit (LastName_1stInitial) $RentAmount EXP yyyy-mm-dd5) Create a great lease by reviewing several from online, then have attorney review for compliance with state & local laws.

Yes, I agree that any needed maintenance work is just needed and expected (roof, mechanicals, etc) and not substantially change any values, so to focus on what may attract good tenants and higher rents (adding a deck or dishwasher, etc.). 

Michigan has no laws about appliances - not to be confused with mechanicals (furance & hot water heater).Your liability depends on what your lease states.Our lease states appliances are supplied for tenant convienence, but we don't have to fix them.Of course, tenants NEVER read their lease and alwasy seem to think they're staying in a hotel and a landlord has to do EVERYTHING for them.So, in realtiy, we fix appliances for good tenants so they stay.