The property is undergoing a light rehab (new paint, new LVP flooring, new toilets, new kitchen, new vanities etc).

Cap-ex was needed for:* Original 1960s kitchen, appliances out of order* Original 1960s Pepto Bismol colored tiles in the bathroom* Tobacco and marijuana stains/odor in every room* Stained carpet covering damaged hardwood* Broken side door from forced entry by police* Zero recessed lighting with 3 layers of blinds on every window* Lots of trash in the basement both on the floor and mounted to the joists overheadCheck out the Zillow listing at: https://www.zillow.com/homes/119-Jasper-Pl-Alexandria,-VA-22...What made you interested in investing in this type of deal?

Kitchen?

We bought enough equipment to do 500-1000 letters per week but recently decided to start outsourcing again.

It is pretty pricey IMHO for some but worth it as a luxury kitchen item.$349 - Breville the Infuser Espresso Machine - https://www.amazon.com/dp/B0089SSOR6Now this is a semi pro level espresso machine.

I plan on having kitchen remodeled, new flooring out in, and a wall removed.

New roof, siding, soffit, fascia, flooring upstair, repair fencing, yard work/landscaping, new flooring upstairs, new vanities, kitchen remodel, new paint job What was the outcome?

But I just put a ton of money into the second place for a new kitchen and the first place is not in an area I want to live in anymore.

Also the majority of those costs to covnert to a 2nd unit will need to be capitalized and depreciated, but some things (new appliances, flooring, paint, kitchen cabinets) can be shorter year assets vs. across the full 27.5 and IF it turns out that unit is > 50% you can use bonus as well on those items.

As an investment property owner, this means less maintenance and fewer unexpected expenses from storm related damage, often resulting in more affordable insurance premiums, less wear & tear on mechanical equipment, roofing materials or exterior surfaces.