Has there been extensive physical improvements such as a total rehabilitation of the structure?

I plan to buy my first rental property this year and soon after hope to make rehabilitation of my local eye sore homes the focus of my career. 

However, you must subtract any rehabilitation credit allowed for these expenses before you add them to your basis.

the rental property was out of service for an extended period, Schedule E will reflect the costs for renovation or rehabilitation as repair expenses.

House needs major rehabilitation work." 

View report*This link comes directly from our calculators, based on information input by the member who posted.I have $85,000 available for a residential rehabilitation project.

What you pay can be included in the lawsuit, and it may be easier to get that back vs. freezing and rehabilitating your credit and having to try explain that every time you seek credit from now on.  

First, you must find properties which can be significantly increased in value by rehabilitation.

To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

I learned a lot in the rehabilitation process as well as the property management process.