The property is in a Historic District in DC, which we are told it would be extremely hard to obtain permits to convert back into a 2 unit property.We have also been told that since there isn't a second door in the front of the property anymore (which with the new laws a second door cannot be added again) and because the basement divider wall has been removed the property cannot be grandfathered into the old laws and we would have to go before a board to be approved and that this would be extremely hard to do.We agreed to buy this property based on the fact that we could convert back into 3 level 2 unit property.

@Mark AndrewsYou are required to first allocate the purchase price to land and the building.The amount allocated to land is non-depreciableThe amount allocated to building is depreciableYou may also make improvements to the property which can possibly be added to the basis(if not expensed). 

There is no room on the first floor to add even a half bath, but I am going to be adding a full bathroom in the basement.

Good tip there.I will be adding a nest, and it will be linked with an alexa (for multiple reasons, including security features).  

I like the Columbia Pike corridor in Arlington, reasonable prices, strong rents, in the long long term likely a streetcar/metro line/hyperloop will probably be added.

You can reach out via the website's contact page and say you are a buyer and want to be added to their list.Hope this helps some!

I assume that will be added to the cash invested.What was the purchase cap and your project year 1 cap?

I am now hoping to keep the cost of the work under $40k while bringing it up to "market level", because this is the amount that I was told would be added to the appraisal if the "market level" renovation work is done.~ JonPS new appliances are already in the bag to the tune of $2000.

Is this property your parents property and they will be adding another rental to there portfolio?

However, I would invest in a mature market if there was enough value to be added.