Improve your position by trading out and up.

Here's a couple of quick add-on questions:When figuring expenses or improvements on the rental, where do overall expenses and asset purchases go - the things not applicable to just that one property? 

Your taxable income may be more than $15k (from capitalization of improvements, for example) or less than $15k (from depreciation or cash-out refi). 

Look for deals that need physical improvements that will allow you to increase rents and occupancy.

Simple things like larger trash can options or having a pool or lawn (constantly need to be refilled / watered) can greatly affect those numbers.Electric can vary widely too based on AC age, efficiency of house (wood vs. stucco), and living habits of the tenants.

We may want to lower the Refinance loan amount to improve Cash Flow.  

Or what if he considers capital improvements to be “repairs” making the property look worse.

@Chris Isaacson , Bank allows you to do that for internal efficiency, but you have to report gain to IRS. 

Many other states offer these types of plans through your gas/energy company so you should look into that if you are concerned about AC unit being old and not wanting to proactively replace.

I have a friend who built a Brand new home about three months because he is in the business for a long time, his Superintend itknow the city Schedule& Worked with subcontractors Efficiently.