For some reason, the IRS does not like taxpayer getting a break (i.e. lower tax rate) on gain that was generated by depreciation, so the IRS decides to take back the tax break on the portion of the gain that is generated by depreciation, hence the term "depreciation recapture".

@John KesnerAlso make sure one of the bedrooms meets the market for size of a 1br.

As a matter of fact, the portion allocated to the interest will decrease every month as you are paying down the principle which means a smaller amount owed = less interest due.

I'd be interested to know if they're putting in condos and/or apartments, and if so, how many, what size, what price range, etc.Thanks in advance for any info!

I would look for fixed interest under 10% but preferably under 6% and a purchase price no more than similar houses in the neighborhood on the MLS (you could look on zillow or realtor at properties nearby similar size/condition).  

Currently in the market for a software that can handle a few small properties and expanding into a full size property management company. 

Depending on the size, crowdfunding? 

So my question is can I go after the home inspection company for at least a portion of the cost since this should have been caught during their work?

And if you add in other major mechanical things...it might run up to $10k...also on the lower rent range you will need to have a higher percentage because while a roof's cost will vary by the size and class of the property...things like heat and air and water heater and appliances are relatively fixed therefore being a larger percentage of your rent.

., invest in a small portion of 100 units rather than 100% of a handful of units, and 2) make sure that property manager has "skin in the game" as well.