Should I look at this every year to see if my depreciation basis is updated?

However, the house is in need of additional updating and renovations, so I'm wondering if we should put the money in to this house or sell it and purchase 2-3 properties in better neighborhoods. 

Keep us updated on your progress, and good luck!

We put in 3/4" hardwood oak, painted, updated a bathroom, painted kitchen cabinets, changed countertops & tiled the flooring.What made you interested in investing in this type of deal?

Any other wisdom or thoughts in general that I haven't specified, please feel free to comment below.Excited to keep moving forward with this project, I'll be sure to post updates, challenges and triumphs in relevant threads. 

To maximize your cash out, you will want to get the loan once the rehab is completed so the appraisal is based on the updated property. 

Building is 10,000 sq ft and is about 17 units right now. that is made up of:1 apartment16 officesAll updated utilities and mechanicalsFairly large piece of land - 2 buildable lots on itFirst floor: occupied by one long standing tenantSecond floor: remainder of offices - about 5 vacancies - is basically a co-working spaceBeautiful/highly desirable locationNegotiated price is good.

With the depreciation on those types of upgrades I felt it better to go with longer term leases that also allow me to update some stuff during the tenant's stay.

Keep us updated on your journey and good luck. 

There are a lot of factors on the rent analysis for it to be accurate  (does it have a pool, is the pool updated, does it have a spa, kitchen/bathrooms updated, proximity to nightlife/activities, what is the back yard space like?).