This will save you on subscription costs.QBO is a monthly subscription but most accounting software are.If you want to discuss any of this further, I'm happy to answer questions and help walk you through it.Best of luck!

They've especially been inconsistent in their communications and sometimes respond to messages only after I press them for an answer (sometimes they are responsive).

Originally posted by @Travis Hill:I am reading a lot about property classes and how, who, and where are they determined?

Sorry, but this is another one that doesn't have a black and white answer.

The answer will form around what work you are doing that requires permits.  

The second year we only spent $25,000, and achieved our original goals.  

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

I will still stand for the review I gave it in my original post, I think Pace and his team and the community is amazing.

When I was in your exact situation looking for help, they were the only ones that provided solid answers and walked my wife and I through the full transaction.

The short answer is that much of the rental market is moving to the "surplus" market.