Things that increase the basis: Capital improvements, broker commission, lawyers fees, zoning costs, installation of utilities, title search, etcThings that decrease basis: Depreciation, percentage depletion, easements etcHow do I avoid paying the tax on the gain?

@Nathan Lapham, I think all you can do is document the condition as it is now and make sure it doesn't get worse.Ask the tenant to clean up the crayon marks and see what they say.I'd try and fix the crack in the cabinet door if possible so that it doesn't get worse.These both sound pretty minor compared to things I have seen.

Depreciation expense of depletion.

That money is going to be depleted fast by the electric bills, and I don't know how to recoup the money other than saving my last month's rent.

I recently reviewed a property that had a brownfield cleanup next to it.

front before, not too bad, vinyl sidingFront after, landscaping, trim paint, cleanup, etc.Entry before, vinyl floor, original 60s railings etc..Entry after, travertine tile, new iron/wood railings.Kitchen befores:Kitchen afters: stainless steel, maple cabs, travertine tile and backsplash, granite slab countersand island.

Flooring, paint, cleanup and back on the market for $699,950 and in contract in 32 days for $660,000.

I would have all the floors done in white concrete and acid stained for good looks, easy clean up and it will last long. 

Just come clean up front, and let them know we have not seen it but my client wanted me to submit offer anyway, and if we are close on terms, we will go see property.Or maybe just "play the game" and go along with the program and hire an assistant to go to each and every property.BTW - I just love BP!!

For $200 it's just not worth the hassle.However, you could enforce your existing lease and demand they clean up the yard as per the lease and maintain it on a regular basis.