Recapture is figured at the lesser of your marginal tax rate or 25%, so if you're in a higher tax bracket you end up repaying significantly less in recapture than the benefit you received.

I wouldn’t buy it.It doesn’t seem that there’s much room to add value and the margins are really low.

@Carlos PattersonYour percentages are way off Property manager try 10% atleast Vacancy atleast 8% - your miscellaneous expense fund would cover those though The reality is even if your numbers were accurate your deal is marginal at best .

It really does not impact FICO unless the applicant is marginal.

I interviewed her for my Benicia property, ultimately I did not use them because of the margins of my property. 8% and I believe half rent if they find you a tenant up to maybe $1450? 

You should be able to realize a general margin from high to low.

The reason is that you will likely pay a marginal more for property taxes after you renovate, marginal insurance premium increase, tiny bit more utilities, and that's about it.

Recessed lighting.....The margin is thin so the lest you spend the greater the return. 

One can do better by buying treasuries and zero risk and then margin that bond and easily use those funds to buy more and more bonds to compound their return with basically zero risk.

@Jonathan Oh - one reason an investor would bring money to the table (especially if it is a fix and flip) is because they believe the ARV  will be much higher than the current As Is Value and the profit margins are still to their liking even bringing money to the table.Another reason, is the investor is thinking long term and believes in the future that property will appreciate greatly.These are just two that come to my mind.