HVACs are probably the biggest single work order item.

But to stay in compliance with NYC Department of Buildings (DOB) rules, every detail must be handled precisely.Let’s walk through how it works under DOB’s Technical Policy and Procedure Notice #3/97 (TPPN 3/97), and why having the right professionals on your team is key.C of O Not Required—When You Follow TPPN 3/97TPPN 3/97 allows apartments in multi-family buildings to be legally combined—without triggering a C of O update—if:The overall number of primary living spaces (such as bedrooms, living rooms, dens, etc.) stays the same or decreasesYou don’t alter building egress (staircases, corridors, exits)The work is limited to interior constructionThis provision applies to all multiple dwellings in NYC, including old law, new law, converted, and new code buildings.What You’ll Need to FileArchitectural Drawings from a Registered Architect (RA) or Professional Engineer (PE)Alteration GC Application for general construction items like partition changes or internal stairsAlteration PL Application for plumbing work—particularly when repurposing or capping kitchen fixturesLetter of Completion issued by DOB when the work is signed off, confirming no new or amended C of O is neededTPPN 3/97 Requirements—SimplifiedSame or Adjacent Floors Only: Combinations are limited to apartments located on the same level or directly above/below each other.

@Karla Sosa - I don't know Bakersfield intimately, but when I evaluate a market in general there are several items I consider: Population growth, Income Levels, Crime levels, poverty levels, Rent/Price ratio for the property type your considering, landlord laws, and industry mix.

Outside of that any capex items that might need replaced now or in the future.

@Jason Malabute https://www.irs.gov/faqs/itemized-deductions-standard-deduction/real-estate-taxes-mortgage-interest-points-other-property-expenses/real-estate-taxes-mortgage-interest-points-other-property-expenses-2it clearly refers to the buy build or improve the residence the heloc is secured by.

I want to incorporate some of the tenant driven items to the lease and set expectations on repairs / service calls they would be charged for.

A good home inspector will already be checking for electrical / plumbing / age or condition of roof and other everyday items like those so it should be in the general home inspection report you requested.

OP just followup items.1.  

It’s time to replace one of those higher cost items in a rental: the air conditioning system.

That being said, I seem to be doing better than most.I had a couple large ticket items to fix last year that really ate into my profits, but I still ended up positive and with a great retreat from the city that pays for itself.