Section 1231 basically just refers to whether the asset is eligible for favorable capital gains treatment.

My experience with all of our properties on what tenants will and won't pay for:Will: prime location; maximum square footage possible for the price range; an extra bathroom; good storage; no carpeting; accepting pets; fenced-in yard; central HVAC; main-floor W&D hookups.Won't: fancy appliances; upgraded counters; jacuzzi tubs; fancy outdoor spaces; throw-ins (lawn care, pest control, etc); fancy floors; fancy window treatments; Our tenants have consistently told us that they value the most space per dollar that they can get, in the best location, with basic amenities more than anything else.   

My in-laws did that when they moved from Cupertino to Nevada City... same scenario  sold their little rancher for 1.5 and bought a really nice home in for 600k but the rancher they paid 30k for in the mid 60's  Best tax treatment around Is to Live in Vancouver Washington  work there .. pay no state income tax. property tax's are lower ( but they have a 1.7% sales tax when you eventually sell) then cross the bridge and pay NO sales tax on everything you buy in Oregon.. that's why you have major malls right across the river HUGE costo etc..

Tax treatment is unfavorable compared to other investments, for example, long term capital gains of Mutual Funds or ETFs. 

Plus I got GO zone tax treatment that was HUGE.. not available now.but I am selling all my rentals and I have 3 left.. with these I did not need PM as the tenants were top teir I just paid a RE agent for placement when needed and had a handy man.

We replaced flooring, window treatments, painted the interior, made major upgrades to the termite infested exterior, and more.

Tax treatment - the US tax code is highly favorable to real estate investors relative to all other forms of investment.4.

A REAL General Contractor gets very special treatment and they should, Even at lowly Home Depot every order over $2000 goes back to corporate in Atlanta for review, where they will knock off 5-25%.

I will have to ask my clients if they got the same treatment.. 

BTW, if my tenants pay their rent on time for X number of years, do I now owe them special treatment?