Value is being added by doing a full gut to the property, new mechanicals (plumbing, electric, and HCAV), as well as new cosmetics throughout.

I can understand some things, such as new window, but are cosmetic improvements such as paint and power washing really necessary for Section 8 approval?

Do small cosmetic repairs to start with and start learning the rehab process. 

However, minor cosmetic repairs or repairs to personal property cannot be deducted such as paint, replacing broken hardware, fixing leaks or holes, etc.(2) If you have other types of investments (e.g., stocks or mutual funds) that are operating at a loss, if you liquidate those investments to take a loss, you can use those losses to offset your capital gains.

If unit needs work to get to market rent and tenant decides to leave then do whatever cosmetic work needed and get new tenant.

We then stayed in that one (though it wasn't bad - just needed some cosmetic updates) for 7 years, just moved out, kept it as a long term rental, and moved into another major fixer in our STR market across the country near Acadia National Park in Maine.

Consult with a mortgage broker or lender to determine the best financing solution for your investment goals and financial situation.Property selection: Look for properties that have the potential for value-add improvements, such as cosmetic upgrades, energy-efficient upgrades, or additional amenities.

Light Cosmetic ($40-$50 x Sq.

The property seemed like a great investment with minor cosmetic issue to be done.

If you can find cosmetic only rehabs you can really super charge it.