Thus, I can defer taxes.I believe as long as the LLC invoices under $2500 per UOP (for example, insulating the crawl space) and the charges are market based, reasonable, and are not abusive, I can use de minimis to expense.  

It's a 3 bed 2 bath 1800 square foot two story house...ARV is probably around $225kI'm trying to research how much drywall and insulation I would need...seems to me like 18,000 square feet...does that seem right?

We put no money down, then put $15,000 into repairs (electric, plumbing, pool deck) and over the past two years put another $10,000 into it (insulation, heating system, new windows) How did you add value to the deal?

No one cared, nor was willing to pay for, my upgraded appliances, high efficiency insulation, convenient & extra water main cut-offs, etc. 

Lot of established high end areas can insulate themselves from the downturn somewhat, but you're right about the rents.

Seriously though, I know my way around a house from doing extensive work on my own (siding, windows, electrical wiring, insulation, extra insulation, fence, deck - on and on) and I do feel like my appraisal of needed repairs is reasonable.

(Age of home, insulation, door and window type, wall thickness, etc..).$4100 is a good price for replacing the system.

Look into the closets and cupboards and they're likely similar :sigh:  Depending upon local codes (aka retro fit) and weather conditions, sealing and facing with drywall would at least add an insulating factor.

As I do renovations to it I am trying to make sure I insulate as much as possible, even though I won't be paying the heat bill, I imagine it will affect me when my tenant gets a huge bill and then can't pay the rent because of it.

Restoration of historic articles/structures of the building might also costs way more than replacement but it you can't replace, then you will have to eat up the significant cost upcharge.Utility costs might also be higher than modern, better insulated buildings specially if you get below freezing weather.Historic buildings might be cheap but renovating them usually cost a LOT higher than the usual buildings.