-According to Backflip: ARV $242 ROI 25% (based on $46K investment including reno of $18k) Profit $11k -1986 build - 3/2 - 984 sq ftFrame/vinyl siding (Single family)Fenced corner (oversized) lot with 2 10×16 functional sheds - Huge patio wood deckListed for 60+ days already with 23k reduction recently **Here's some things I noticed in the photos/PA website:17 year old shingled roof will likely need replaced...hard to insure unless wind mit can show 5+ years life expectancy with most carriers.

I am a homebuilder in the Houston area and 140$ per square foot would include finishes such as 10 ft ceilings, calacatta waterfall cabinetry, tile in all of the bathroom walls, freestanding master bath tub, waterproof laminate flooring, 8 foot doors everywhere, etc.170$ per square foot and you start getting into the custom luxury home market.200$+ would include large porch areas and patio upgrades, maybe even a pool.

.-- There are a lot of house-hacking setups in Denver and Colorado Springs where we work that have an entrance to the basement that can be locked off from the upstairs but is actually the house's back door to the patio.

The expenses need to meet the definition of ordinary and reasonable though.There are different classifications real estate investors in the tax code as well and it can play a major part in what is deductible and when it is deductible.Education expenses for the purpose of learning a new profession would be difficult to qualify as legitimate business expenses.Hobby loss rules can apply to real estate businesses as well as any other business and need to be considered.The real estate professional status can be quite beneficial if an investor qualifies.

As such, the income you earn is considered ordinary and subject to self-employment tax.There are strategies involved that allow you to limit your exposure to self-employment taxes.Furthermore, you may be eligible to put a sizable portion of the income earned towards a retirement account allowing you to reduce taxable income. 

Nothing screams out of the ordinary here.

Highlights include all-new furnishings and a patio with a gas grill and pond views.

There are no tax breaks on top of that, and you can’t use that depreciation to offset any of your other income.Unfortunately, dividends are taxed as ordinary income, which can contribute to a bigger, rather than smaller, tax bill.Difference #7: ReturnsWhile returns for any real estate investment can vary wildly, the historical data over the last forty years reflects an average of 12.87 percent per year total returns for exchange-traded U.S. equity REITs.

One thing that you mentioned in your post that resonated with me is "any out of the ordinary methods".  

I have incurred $22,000+ in plumbing repairs alone, not to mention initial attorney fees, yard and patio repair from excavation, and cleanup in the apartment itself.