To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

We'd like to purchase several homes in great condition with the seller carrying the down payment. 

Zoned 401-commercial. .353 acre lot7 0f 8 units updates in past 7 years. unit 8 in good condition long term(13 year tenant). all 1 bed/1bath. fully occupied. 4 units on 1st floor, 4 units on 2nd. just had the parking lot repaved spring 24', good drainage.

The appraisal came in at 640k, the comps they used were out of the area, in much better areas, much better condition and really no comparison at all.

Just make sure they allow units to be held as rentals, if so, then what are the terms and conditions if any.Good luck!

Rent will be just over double what it is today due to inflationary conditions. 

Make a move in condition list signed by the tenant., take pictures of everything.

As you become more familiar with neighborhood values and property conditions, estimating ARV becomes easier over time.

After a thorough market analysis, I reached out to the seller directly and negotiated a fair price based on comparable sales and the property's current condition, emphasizing my ability to close quickly.

What is the condition of the houses?