Major issues like foundation work, bathroom renovations, and deck repairs are considered capital improvements, which can be depreciated over time, allowing you to offset a significant portion of your rental income with those deductions.

I’ve had investors that initially bought SFRs in CA and accumulated about $400k - then sold the properties and now are actively buying fixers, small homes and value add properties where they use the $300k to purchase and improve and make between $200k to $300k per year in gross profits when selling a renovated or improved property.

Timing can sometimes be as valuable as improvements in this business.

Rockford seems to be improving, but what areas are a "no go" for buy and holds?

I know Property Meld has something built into their Maintenance dashboard where it asks for reviews after maintenance issues are handled and I think if they rate 4 or 5 starts they then ask for a google review and if it's 3 or below it stays internal and gets circulated around so the team can figure out what went wrong and improve on it.

We have always had the philosophy that if we rehab our properties to a quality level, we will get higher rents, better tenants who take care of them, and we will improve the neighborhoods we invest in. 

What strategies are you considering to improve your flipping process?

Do improvements while living there.You can technically do this every 12 months, or as soon as you can save up your next down payment.You can also buy 2-4 unit properties and use FHA to put only 3.5% down.

Thanks @Max Emory & @Jake BakerI am in the process of test driving Stessa to see if it helps with improving my efficiency on the property management side, including keeping track or insurance, property taxes, maintenance etc.

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