New construction seems to be assigned a higher tax value than improvements or say an addition to living space.

I understand there would be interest, fees and improvements to be reimbursed, but the purchase price my partner paid would not be reimbursed?

I then rented it out to a couple young professionals who have actually improved the property since they've lived there (Best tenants ever!).

I then rented it out to a couple young professionals who have actually improved the property since they've lived there (Best tenants ever!).

I hope they improve but I am considering other options if they don't.Another note; they are always very friendly on the phone. 

@Asury Johnson - good questions...I’m walking through the house tomorrow to assess condition - last summer I saw him paint the exterior, install a new roof and AC, and made some interior improvements, too.

(Mostly car loans, 3 year terms left, and a 4 year home improvement loan).

They prefer valuation focused on the lot income, and any hard improvements, amenities, etc.  

If I make some improvements I could get $400 per month above mortgage and after I back out vacancy, management, and Cap-ex would it end up being worth keeping?

I like the process of finding a fixer upper and making it a nice house.Considered rental investments but right now to me and my wife - fixing and improving homes seems more exciting than managing a rental.