But this is a great opportunity as you can borrow from private lenders, upgrade the property to attract new tenants and 6 to 12 months later, refinance through the bank.

Obviously there is great inherent value in the infrastructure (paved roads, upgraded septic systems, water/sewer lines, etc.) so how is a reasonable depreciable basis calculated from the outset?

You can actually also change line of work if is considered an upgrade, moving up the ladder type of. 

We enjoy transforming investments like this and seeing how this real estate houses improve after upgrading every corner of them!

We enjoy transforming investments like this and seeing how this real estate houses improve after upgrading every corner of them!

TONS OF UPGRADES, GRANITE, CUSTOM CABINETS, CORBELS, STAINLESS STEEL APP PACKAGE W/ FRIDGE, HEAVY CROWN MOULDING, DBL SINK IN KITCHEN,9 FT SMOOTH CEILINGS THROUGHOUT, CERAMIC TILE WET AREAS, OIL RUBBED BRONZE FIXTURES & HARDWARE, WAINSCOTING, GAS LOGS FIREPLACE IN GREAT ROOM, 5 INCH HAND SCRAPED HARDWOOD FLOORING, COVERED FRONT PORCH W/ CRAFTSMAN COLUMNS & LARGE COVERED PATIO,OUTDOOR FIRE PIT & STAMPED CONCRETE ON PATIO, ARCHITECTURAL SHINGLES, MOSAIC GLASS TILE BACK SPLASH & TILED GARDEN TUB.

Purchase price: $122,000 This fixer upper was a great upgrade for the new home owners!

Existing tenants love the place and want to stay, so only upgrades I'm making are to electrical, plumbing, roof. 

I already know that in C class housing this is pretty much the deal and choosing wisely the upgrades are important.

We oversaw the contractors that were performing the major work including electrical, kitchen renovation, heating system upgrades, painting and concrete works.