Purchased on 2/1/2024 for $58,500, we invested $55,000 in renovations to enhance the property’s appeal.

We had to bring the 1925 house to 2023 code which involved un-installing 26 windows that were already nicely installed (in appearance) in the house, reframing them to 2023 standards (at the time) which also involved strapping the bottom of the wood framing with metal straps (mind you this all after we had already completed the inside renovation).  

Plus, it would be a first renovation project, and other properties we may be able to close on are huge projects.

Renovated basement recently to prepare to rent out.

The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

Washington D.C. is fully embracing this trend, partnering with Monumental Sports to conduct a $800 million renovation of the Capital One area, which is home to the Washington Capitals, Washington Wizards, and other large entertainment events (Source).

Sounds like I can safely write them off only after I purchase the rental and start the renovations to ultimately rent it out.

So, make sure YOU understand the copy & paste info below:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I have 3 associates / relatives that would be doing my renovations, as I would be finding, analyzing, and purchasing the deals. 

They are often located in lower-income neighborhoods and may need maintenance or renovations.