For example, if you buy a single-family home in an opportunity zone for 85k and you can reasonably attribute $35k as the value of the lot, your threshold for substantial improvement is capital improvements that result in additions to basis of 85k-35k = $50k.

Sumana - you mentioned a few very important attributes.

Things like use of debt can create some tax liability inside the IRA, on the debt-related gains only, not on the gains directly attributable to the IRA.

The longer a tenant has lived in a unit, the harder it will be to make them pay for cleaning, because it could be attributed to wear and tear, not abuse.

If debt-financed real estate is acquired via an IRA, any income attributable to such investment will generally be subject to unrelated debt finance income tax.5.

We have a monthly payment of $1750/mo and it reduces the principal.During the taking inspection period and taking possession. there have been some items directly attributed to the previous owner that caused some problems. 

The one thing I am in disagreement is wth regards to location based pricing , that is common in most service businessesBut somethings that tend to be over hyped commonly here are - that costs vary crazily depending on location , Ofcourse there are extremes in anything , but most of the numbers in your quotes cannot be attributed to just location based costs. 

If debt-financed real estate is acquired via an IRA, any income attributable to such investment will generally be subject to unrelated debt finance income tax.5.

If debt-financed real estate is acquired via an IRA, any income attributable to such investment will generally be subject to unrelated debt finance income tax.5.

The preceding sentence shall not apply to—50(b)(2)(A) Nonlodging commercial facilities which are available to persons not using the lodging facilities on the same basis as they are available to persons using the lodging facilities;50(b)(2)(B) Property used by a hotel or motel in connection with the trade or business of furnishing lodging where the predominant portion of the accommodations is used by transients;50(b)(2)(C) A certified historic structure to the extent of that portion of the basis which is attributable to qualified rehabilitation expenditures; and50(b)(2)(D) Any energy property.I would take the position that hotel-like activity is a sub-set of lodging under Sec 50(b).