The lesson here is never buy into a property that you cannot take your family to and continue to research the area if you are banking on the neighborhood to be improved.

Oakland has some ambitious plans to improve the city, and as rate improves, I firmly believe certain parts of Oakland will recover faster than others.

In my experience it is common and customary for the landlord or builder to provide TIA, tenant improvement allowance, to the tenant to assist if not cover the majority of the internal buildout. 

We added value by updating the kitchen, bathrooms, and flooring, while also improving the property's curb appeal.

@Shafi Noss Improving the land would be the simplest since there's already a driveway, electricity, and an old water well that needs to be jetted again.

Improved Landscaping, LPV Flooring, new kitchen and bathrooms.

I’m also using a 6% vacancy rate, which brings the net monthly cash flow to about $200 and a CoC return of 13.06%.Summary:I’ve created around $50k in equity (difference between ARV of $200k and total investment of $155k).I’ve got about $10k or $18,385 left in the deal (factoring in closing costs).The cash flow is healthy, and the CoC return is strong, especially as a first-time investor.Questions:Does anything look off or could I improve the numbers?

Owners cannot recoup these costs through higher rents, meaning they are effectively being penalized for trying to improve their properties.Instead of discouraging responsible property owners who follow the permitting process and invest in meaningful upgrades, we should be focusing our efforts on ensuring that all renovations are done legally and safely.

By investing in a high-quality $109,106 renovation, we modernized the home, improved curb appeal, and upgraded key areas like the kitchen and bathrooms.

I wouldn't want to scare a buyer away because of some capital improvements that haven't even been voted on yet.