Capital Expenses, items that are not just consumables like appliances, roofing, AC, all have what is called a Class Life and get depreciated according to IRS rules for that Class.  

He said that I could get about $30,000 of the rehab costs through a program like ygreen.com, basically if you upgrade Windows, roof, drought tolerant landscaping, and other energy efficient items, you are able to get a loan that is attached to the property taxes for the property.

You'll have to figure your adjusted basis including a small amount of depreciation and untaken expenses and capitalized items.  

don't know there is in many other states.. plus as stated no income tax.Oregon has no sales tax.. and that's cool when your buying high ticket items like a car for instance or a million dollar motor home.. or a 3 million dollar plane.. then it offsets nicely.

Also have a list of items that you have fixed up or upgraded and give that list to the appraiser. 

I do have material allowances for some items, which on my $170-200k builds, is about $30-35k.

Items needed include:  new HVAC (current was installed in 2003), new water heater (the house has two, one is new, and the other was made in 1998), significant bathroom repairs/remodels in both bathrooms to re-do unskilled labor, window replacement to re-do unskilled labor, destruction of the garage and rebuilding the roof to be without the garage, destruction of a cinder block wall that was supposed to be used with the garage, finishing the driveway that was half-completed, fixing plumbing violations, new flooring and paint in the entire 2000 sq ft house, updating tax records with number of rooms and bedrooms, and some cosmetic updates.I initially offered $90-95k range, and said I would present a final offer upon review of the repairs.  

I think people who've been doing this a long time look for 12-15%.I would suggest paying close attention to the inspection, especially with the big ticket items that Brandon talks about in that webinar I mentioned in the last post.

This would cause major moving of kitchen items. 

Item #0499437 with 1100 Lumens.