Purchase price: $58,000 Cash invested: $32,000 Sale price: $145,000 Total cosmetic rehab including, interior paint, exterior paint, new roof, new flooring, new tile in shower, new fixtures and painting basement.

If you want to prevent insurance claims I'd just look for a brick exterior and make sure your roof is insurable before close! 

But then we've got a 5/2 or a 6/2 house that's harder to rent.Alternatively, the attic could be used as "office" space or storage, since there's an exterior stairway to it already, too.

However, the exterior is loaded with chipping paint on all of the window frames (39 of them) and all the trim on the house.

Do we need to have keyless deadbolts on all exterior doors? 

I have always been of the opinion that the first line of defense of a home is the exterior...

The house required new flooring, new exterior siding, new windows, new cabinets, new siding, new plumbing, and new electrical.

The home is in pretty good condition interior and exterior.

Keep track of what items are purely for the rental unit and what items are for both units.If it's an item that is technically for improvement of the whole house (landscaping, common area improvements, exterior siding/painting) you can only write off a portion.

Square footage and number of interior and exterior levels is also very important for rentals, you have to look at the comps.