., 17.5 years remaining for residential property).New Schedule: Simultaneously, start a new depreciation schedule for the additional cost basis attributed to the replacement property, following standard timeframes (27.5 years for residential, 39 years for commercial).Option 2: Treat as New AssetCombined Basis: Treat the entire cost basis of the replacement property (carried-over basis + additional funds invested) as if it were a newly acquired asset.Single Schedule: Depreciate the total cost basis over the standard timeframe for the replacement property type (27.5 years for residential or 39 years for commercial).If you choose option #2, you need to file an additional form (4652) with your tax return. 

...I wouldn't.To make matters worse, the property isn't appreciating (because it's in a low appreciation market, or even a depreciating market), and the tenant pool is primarily made up of people with bad credit, low/no income, and a history of property damage at the previous places they've rented.

However, we are coming off a dozen years with crazy RE appreciation   That trend is unlikely to continue unabated   We could enter a low appreciation or depreciation RE period.  

@Samuel Metcalf- thanks   1) I would recomend getting a HELOC in place on your primary residence duplex  for  as much as  possible...this should be available for  free or a low  cost and the rate will be variable in the  8-11%  range ...prime rate +  margin of  1-3% ) ...the min payment is in interest only payment on outstanding balance   2)  use the heloc for the  remodeling  costs ...pay it down as  agressively as you can   3) on the  purchase of the investmenet  1 unit -  you are  allowed to put as little as 15%  of the price for your down payment ...the pricing you get for the loan will improve  as your down payment  grows so you might look at  75% /  80%  and  85%  ltv  options 

Does your Mom have some additional funds to leave you for maintaining the home while step-dad occupies?

Sorry if this isn't the correct sub to post in.I'm a house flipper, I primarily do fix n flips and recently got an offer from my hard money lender where they want to fund me up 90% of the cost for multi family properties.

Where I live in Florida, payment is due the next day... in cash or certified funds.  

Investing is just that: Investing your funds into property and yielding a return on that money some time later.Good luck out there!

Saved it from tax sale and created a low entry fee for the new buyer What was the outcome?

I would suggest Home Depot, Lowes, Menards, Floor and Decor, other flooring distributors in your area, etc....