Ok, seems somewhat excessive to me, but you have to deal with some things.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

The restaurants can be $200-$300/month and the travel, which still isn't excessive, is $3K-$5K/year. 

So I learned that although you can't count the excess rental income to go towards your income, you can still use it to offset your DTI. 

You will have to take additional steps for moisture mitigation, egress, etc. which will drive up your costs even more.I would go talk to the city and a local architect/engineer/GC and see if you can get a better idea of how much would be involved with something like this.

Then call your local building department and ask if there is anything they require in excess of the 2015 IRC.

., @Bruce Woodruff, and especially @Jill F..The only three things I'd like to emphasize are:(1) Linda's understanding that you have to know what kind of rental you're aiming for before you start redesigning a kitchen and planning on shelling out the big bucks.(2) Jill's rock-solid description of the process of getting this done.(3) As Scott said, if this is a C-class apartment, light that kitchen up like a surgery, and understand that less is probably going to be more here before you open up your wallet.Only one thing I'd like to expand on:The cheapest cabinets are made out of particle board, it's heavy, it warps and swells when exposed to moisture very easily, but it's cheap.

No one thought about the damage the moisture in the place would have done.

We have some excess money and would like to purchase our first investment property.

Around a month ago our tenants started complaining about it being hot inside the home with condensation and potential moisture problems.