It is not just buying the property, investing an amount in proportion to the purchase is also required.  50% of the acquisition price is required to improve the property.  

It's been there probably 25 years & they still prefer it to the old laundry area in the basement.In Europe you will often see a compact washing machine under the counter-top next to the dishwasher. 

But I think it's obvious to eyes not blinded by sentiment that the area itself is going to be much more compact, with a much smaller population, far more centered on the city.

Man-made events could include grading or bulldozing the site or driving heavy vehicles over the area (compacting the soils).

I have a couple of properties where the driveway is stone ( not Tar and chip for those that know what that is) just stone, as matter fact i did one myself, truck load stone and a rented backhoe just compacted with the bucket of the machine run backwards over it and riding the machine on it.

Like @Theresa Harris mentioned if you have a solid compacted gravel driveway with good drainage might not be the best use of your money.    

The land is evaluated at 20% of the total cost of the asset.I think I understand that, I can depreciate in proportion to the square footage used exclusively by my tenants, but not common space (kitchen, living room, etc..).

"Benefit" my rear end.In my area there's a new down payment assistance program for Alameda County wherein they get a proportion of your appreciation related to how much they helped with the down payment, if they are in it for 15% then they get 15% of your appreciation.

No one tells you about the compact washer/dryers until you have a stackable in the kitchen and need to move it with limited space and start researching yourself, for example.

I am considering helping her buy a house (we will both be on the loan and title) in which she will live and also rent out 1 or 2 rooms.From what I've been able to find, I understand that if I make a portion of the mortgage payment, I am entitled to a proportional portion of any personal deductions (e.g. the mortgage interest deduction).I also understand that if a part of a home is used as a personal residence and a part is used as a rental, that the costs are split proportionally in order to determine how much cost is considered personal and how much is considered a cost of the rental.What I haven't been able to figure out is how to treat the costs and income if we share ownership of the house and we both contribute to the payments while she uses a portion as her personal residence while we also rent out 1 or 2 rooms.Can anyone help me understand how to allocate the costs and income?