Low initial investment that I can make some minor improvements to and rent without feeling like I have a ton of money tied up into it.Wilson, Yes the taxes are really high.  

Incidentally, having a joint income limit of $750k makes no sense.

I am researching flipping market and i can divide it on 3 segments:1. rehab - when someone gets ugly or under condition house, puts a small money to get condition shortly and sale it as soon as possible - a small profit, high dependence on purchase price. in this case we earn on buying.2. improvement - getting old or cheap house, puts more money to get more expensive house which we can sale for high price and get more profit. in this case we earn on buying and improvement to get highest price among around houses in that location3. re-building or building new one - when we destroy old and build new house. in this case we earn more profit when get something absolutely new with highest price.

I pick up the benefit of improving the property, the year-end tax write-off, and the tenants feel they're appreciated that I listened to their needs and addressed them. 

The property is in average quality due to some recent capex improvements. 

I believe this year there was a law passed that allowed businesses to write off 100% of their capital improvements instead of depreciating them over time.Again, you would need to check with your cpa and see if that applies to you.

Reserves ~ CapEx are fund held for repairs and improvements. 

I also happen to know that the property needs some excavation work done to improve the driveway, which I estimate will run $10,000.

We believe it's a mutual benefit for us and our property owners to improve property.  

hopefully all have a peaceful and happy time. take this time to spend with Family and plan for yours and their future. reflect on the past, improve on the future.