I am in the process of setting my capital improvement budgets for the year and I need some suggestions.

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I want to skip right over the 3-4 unit buildings as they are classed as residential investments and right into the commercial.Every effort you make to improve the building, each expense you lower, every rent you increase, is a direct increase in NOI and a straight up increase in the value of the property.

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Not included are repairs, capital reserves/improvements, vacancy, any owner paid utilities, and management.

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@Sean KuhnIf you put 12K of initial capital improvements into the property at purchase then I would include that amount in your initial capital cost (purchase + cost to put in service) and use that amount when calculating CAP, CoC, or any other measure of return.

That blog was the one and only @J ScottThanks for chiming in and I'd love to profile some of your future investments

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As to your son's business model, from what I gather, he purchases distressed properties (probably physically distressed, rather than financially), improves the properties, rents them, then sells them to investors and holds the note?