This would be my first step into any sort of renovation project and I'm having a hard time grasping reasonable costs. 

I'm in the process of educating myself and want to know if there is a good way to practice running the numbers and evaluating properties.

And yes, I know the next step after distribution is to retitle into my name, and then begin to treat them as "regular" rental properties (rent - taxes - expenses - depreciation).Thanks again!

But when I do my projections, I always assume the increase in Expenses will be higher than the increases in Rents.Therefore, in my particular calculations, it is always very conservative.Also note that even if my Mortgage payment throws me negative in the 1st year and EVEN if the Expense Increases are higher than my Gross Rent Increases, I will still get increasing cash flow.Given this scenario, you will not that I start out NEGATIVE $133 per month but wind up POSTIVE $1,684 per month.AMAZING when you do the 10 year projections and doubly amazing when you actually put it in practice over 10 years.Keep in mind this is COMPLETELY COUNTER-INTUITIVE and yet it's all about the Math.Again, most people (probably 90% or more) will not realize the effects of this until they do the Math.......

To avoid the capital gains taxes, they would have to hold it until their deaths so that you receive it with a stepped up basis via inheritance. 

What steps are required in doing real estate investing this way?

We are just practicing but if someone is interested this doesn't look like a bad deal.

I am extremely new with this and am looking to take my next step.

@Andrew Meng I would like to hear more about your property and some of the research / steps you employed. 

technically yes.. in practice rare..