Traditional, flipping a home in Historic Preservation Zones (HPZ), can come with great difficulty as these neighborhoods come with an extra set up rules and regulations to ensure that the “historical aspects” are well persevered.

This is a special asset class that has a ton of rules and regulations attached to it. 

With that being said use the 70% rule you can't buy and rehab total budget more than $175 All In.  

But I also think part of the investors job should be to improve the community while adding value to his/her portfolio.

Adjusted cost basis is your original purchase price plus capital improvements minus depreciation. 

Those are upgrade calls, where nothing is wrong but tenant wants to improve something.

@Joshua KohlThe short rule is: you can deduct something that would be deductible if the property was already in operation as a rental.

@Scott Schultz  @Karen Rittenhouse  Thanks Scott I was pretty sure there was that type of law or rule.. 

As a general rule of thumb syndications are structured as LLC's and offer you protection through such entity. 

Your property taxes have gone up since improvements, and so have rents they are VERY lucky if you keep the rent the same.