We spent a few month making it very modern and attractive - moved W/D upstairs, new appliances, removed walls, refinished hardwoods, granite, new cabinets etc.  

@Michael KalisYou can't guarantee how the real estate market is going to be because what I've learned is that there isn't an exact science to it.

How you ultimately financed it, upfront when you purchased it (or how you might refinance it later) is irrelevant.Just do a simple search on the internet for depreciating rental real estate property, you will find a virtually limitless number of sources that can explain basic depreciation mechanics - its not rocket science.

As a little background information, I have a degree in General Science from Morehouse college in Atlanta Georgia, a degree in Civil and Environmental Engineering with a concentration in Construction Management from the University of Michigan, and I just graduated in June from the Darden School of Business at the University of Virginia with an MBA.

The other two have access in the back alley road which has several new builds and modern homes around.

I would like to keep using a cheap, larger format tile (so that we minimize grout lines) with dark colored grout, but need some fresh ideas to modernize it a bit. 

It's a very clean house with brand new paint, modern appliances and overall good shape.

If tiling I would remove the mantel and leave it off for a sleeker modern look.

Is the electricity knob-and-tube, rag wire, or updated modern wiring?

I have a Bachelora degree in Petroleum Engineering from Missouri University of Science and Technology.