Suggest you consult your tax preparer or CPA who can render an informed decision in light of your investment strategy, your LLC activity, and your personal financial posture.

He has begun the rehab like lightly

I'll power wash the mold of the siding, put in some light bulbs, have the electric and gas and plumbing turned on (HUD winterizes houses) and get a Certificate of Occupancy inspection.  

The scope of the work is general rehab stuff: floors, windows, doors, light weight exterior work, paint, fixtures etc.We are not looking for bottom of the barrel cheap labor, but fair priced rental quality work.Also, we would like to purchase more properties if we can find a contractor or network of contractors we trust.

I would probably build in 5 year renewals where the rate can go up by no more than 1% or 2% base on what the mortgage market is doing.Yearly cash flow before taxes = $15,500 … after taxes = $14,100Cash on cash return on before tax cash flow: 19.5Other Notes:Rents are below market on this property and I’ll be doing light paint & carpet work.

I want to attract the best possible tenants, so I have painted, laid new carpet, and new bathroom light fixtures, but I am curious when upgrades becomes non profitable.

.***   There is are 3 exterior doors, so the units do share 1 entry way that has a inside and exterior light.***   I'm fairly sure I need to install hard wired smokes (building is 100+ yrs old) and since they are shared, i'd have to put these on an owners panel?

Siding is two tone colored (white on front/rear and light brown in the back).

As it effected my eye sight in a terrible way. not only the right eye , but also left eye was very light sensitive.

Exceptions might be properties within walking distance of the proposed light rail stations