@Arwin Nassiri Be sure to do your due diligence when considering raw land, and consider particularly the cost of getting water and other utilities to the location and whether you can actually build on the land at all - any structures or improvements within 25ft of a Joshua Tree will be difficult, expensive, and likely impossible in most areas - and you generally can't move them either. 

The only time your depreciation basis in a property will increase, is if you add more money into the property via capital improvements.

The hard part with this approach: in a single family with 1 kitchen and 1 bath, I end up budgeting about $450/month just for repairs and long term capital improvements.  

If the other heir fails to step up to probate the property, you may be able to keep all the rent  If the other heir does petition to probate, you could deduct the reasonable and necessary costs of the eviction and of renting the property (but not the costs of improvements).

That would improve the my cashflow, using the 75% rule, to $6,225.

The cashflow looks nice, of course, and the 10 year option gives lots of time to really improve the property and boost rents, etc.

The city collects greater tax dollars from my property thanks to the improvements, which benefits everyone in the city. 

I was able to write the mayor and council members and attend a meeting to show how I was committed to improving the town and why they should release it to me.

I paid $250K plus 30K capital improvement so 280K tax basis.

Please let me know if you have any suggestions on how to improve the tool.