Reserves ~ CapEx are fund held for repairs and improvements. 

I also happen to know that the property needs some excavation work done to improve the driveway, which I estimate will run $10,000.

We believe it's a mutual benefit for us and our property owners to improve property.  

hopefully all have a peaceful and happy time. take this time to spend with Family and plan for yours and their future. reflect on the past, improve on the future.

I don't think I have ever bought a REO property that did not have at least a little mold.So far they have been an easy fix and related to the house being vacant.Bathrooms and kitchens are the main areas which need good ventilation.

I would like to do substantial improvement to the property by building additionand increasing square footage by about 200%.

Lastly, be flexible in TI (Tenant Improvement) you're willing to provide to your potential tenant.  

If I could go back in time I would have sold all my luxury lease options before getting stuck with 14 houses, when the market tanked back in 2007, I lost everything but I am now looking forward to doing it all again now that the market is improving, so I know how to get in but knowing when to get out is more important.

I meant depreciate 2/3 of costs for building improvements. 

So she has not had any tenants in house as she does not want to be a landlord.What should I look out for, as well as what improvements should I look into to help attract good tenants?