Historically, full service management on the coast has been costly but in recent months management rates have come down and quality has improved.

Next, plan on inspecting your properties every 90 days; you can communicate this to the tenant as you ensuring the property is in good order and to help you plan for repairs/future improvements. 

@Nate Pucel The depreciation basis for a rental property includes the purchase price plus the cost of renovations and improvements that add value or extend the property's life.

Hi everyone,I’m looking for some guidance on improving the performance of our short-term rental, and I’d really appreciate your insights.

By reimagining layouts, we improve functionality while enhancing the overall aesthetic.

.- 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.

You may borrow an additional $35000 for hard cost improvements.

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. 

If the fence is shared and in bad shape, framing it as a mutual improvement could help.

You want to be able to demonstrate that your intent in purchasing, subdividing, and improving was to hold for investment use.