Then, once the repairs are made, if you spend more than your initial settlement amount plus your deductible, you can recoup some or all of the depreciation that was initially withheld.Your deductible is always your out-of-pocket expense, so that does come into play, but again, once the repairs are made, gather your receipts to submit to your insurer.

Then you won't be accused of playing favorites.

Not sure where you are here in a city of 2 million HUD homes that go to investors need major work not a single valve .Too many savvy folks play this game now .I have bought 2 HUD homes with cash back when you get a deal on HUD homes fairly easy , I know the game well .The market has changed so I am changing you must or you will wither on the vine .Have a go getter agent now,I am going to start looking this week feels good . 

Location, amenities, and any number of other factors will play into it.Don't be afraid to contact the seller and ask for historical expenses and turnover rates.

Beware of additional fees for sending you accounting every month, etc Someone who does master leasing does not play those games.  

I bought my first property (4-plex) 3 years ago in California and my plan has been to play the long game and try to cash-out refinance every 2 or so years to put towards another like property.

Also if you are going to play Landlord then educate yourself on your local laws and ordinances. 

How do existing home sales come into play?

People tend to be negative they always  told me their  wasn't no money in this  and that the truth  is their are  broke doctors and wealthy doctors broke welders and wealthy welders  it's what you  make out of it life is a hustle.When people  are down playing  buy and hold  I just  agree with them and say yeah  their is no money in this it's just my hobby

You would be playing more toward appreciation and paydown.