Maybe I should look into investing in mobile homes since I have such a huge market right in my back yard.

Hand written yard signs d.

Pic 2 shows exactly how overgrown the yard was and how much has been done in the yard.

Things I've done is rented (2) 10 Cubic Yard Dumpsters, replaced the front porch, gutted the entire upstairs, put drywall throughout 75% of the property, rewired the electrical systems, re-coated the metal roof, landscaping and etc.So EVERYTHING I purchased for the property such as materials, small tools such as pry-bars, drywall knife and etc must be capitalized or just the MATERIALS used for the improvements?

Scott is almost an accountant, LOL, he's right to consider costs to dispose of an asset, while correct, your books do not reflect the cost to dispose of an asset until it is sold or disposed of.From an accounting aspect which is viewed by lenders or more technical types, within the first year of holding an asset it's the difference between the cost of the asset (together with costs of improvements or value added) or it's market value, which ever is less and the amount owed, less cost of disposition to it's salvage value or net equity.

The property had a fence around most of it with an opening near the alley for tenants to park and walk into the yard and a gate up next to the property.

The carpet guys always want to do the work by the square foot or square yard.

The fact that you have puddles near it indicates the yard isn't properly graded.

Neighbors saw me out walking around the yard, we got to talking and next thing you know I am introduced to the neighborhood watch guy who knows the owner of the vacant house across from the REO.

Got ticks on me just from walking through the yard.