In all the leases I am clear the batteries are the tenant's responsibility and make sure to tell them if it blinks red it's time to replace the battery. 

Improved the house to have a basement rental that covered your mortgage, then sold for $100k profit with basically nothing into it.   

@Tanner Sherman makes a great point regarding REPS and whether or not one can benefit from the accelerated depreciation.To answer your question @Alex Bellini, each property, and type of property is unique and have different assets and amounts that can have accelerated depreciation into 5 year (personal property) and 15 year (land improvement) categories. 

Not improved.

They are rezoning to PUD RMD 104 to 247 units on all 13 dry mostly clear and improved acres with 1580 ft frontage & city water on the street and city water & sewer across the street.

It is improved residential land that is ready to build with power and water at the property line.

I want to add value but not over improve.

So I spent the next few years learning, and reading, and improving my credit, and paying off debts, and increasing my income, and eventually, years later, I bought a house!

When the reserves are needed, they are transferred back to the Operating Bank Account so that the expense may be paid out of the Operating Bank Account.The Reserve Bank Account includes sub accounts set up in your accounting system for the following reserves: Property tax reserve (fund this account monthly with 1/12 of the annual cost property tax expense)Insurance reserve (fund this account monthly with 1/12 of the annual cost of insurance)Replacement reserve (fund this account monthly in an amount to set aside sufficient funds to cover the rental property's anticipated [inevitable] future capital improvement expenses). 

I am also planning on taking on more debt to be used to improve the property we are looking to purchase, whereas the partner with the 1031 exchange would not contribute any additional capital following the purchase.