These methods include: Detailed Engineering Cost ApproachDetailed Engineering Cost Estimate ApproachSurvey or Letter ApproachResidual Estimation ApproachSampling or Modeling ApproachExperience or “Rule of Thumb” ApproachIt’s important to understand the differences between the approaches including which one best fits your property and the reliability of each approach.DETAILED ENGINEERING COST APPROACHThis approach compiles the costs from construction and accounting reports to build a report.

If you sell your property, the tax basis (original cost) of the property for the giver becomes the tax basis for the recipient.

I am in this camp myself, as I do this full time.I agree with your point about focusing on long-term sustainability rather than chasing maximum rental income at the cost of increased tenant turnover or property damage.

Determining the cost on something like this is only something you'll be able to find out by talking to the city.

To leverage the equity for financing my next deal, a second mortgage seems like a more cost-effective option.

It’s better to spend a little now than risk costly mistakes later.

Purchasing a “distressed” property and “repositioning” it requires significant capital for improvements, build outs, holding costs, maintenance.In looking for that “needle in a haystack” slam dunk great deal you’re competing with very knowledgable, greatly experienced investors with the cash to make no contingency offers and close in a few days.  

With running this "business" there will be operational input costs.

It is your first year when you get the major tax savings windfall due to cost segregation and bonus depreciation.

If they want to pay $1,300/mo as is, saving you the Reno cost.