If your unit is very out of date you must upgrade it to get $1200.

Say you buy a home for $50k with no rehab costs (if there were rehab costs, you add them to the purchase price. 2% rule says you need to get MARKET rent for $1000 (so double purchase price).50% rule says your operating expenses (property tax, insurance, vacancy costs, legal/eviction costs/management fees, repairs/upgrades - basically, everything but intestest & principal) would equal half of your rent.

The 'free" version is no more than excuse for them to constantly hound you to upgrade.

A traditional BPO isn't going to tell you what a property is going to be worth after renovations are completed...it will only tell you what the property is worth today in current condition, which doesn't generally help an investor.That said, if you're offering a service where the investor sits down with you and tells you all the renovation and upgrades they'll be making, the finishes they'll be using, etc, and you're offering an opinion of value once the renovations are completed, that's not a traditional BPO.As an investor, make sure you know what you're getting and ensure that it meets your needs.

If rebuilding becomes a factor additional money may be available for code upgrades.

Documentation of repairs and upgrades can help to lessen depreciation in some instances.

Many who go the other route feel trapped and spend a lot to maintain & upgrade their home so never save the funds to invest.

If some things are just legitimate "repairs" versus upgrades (fixing a leaking toiler), then yes you can deduct that portion.

Because the tenant/buyers plan to buy, they often treat the property with care and make upgrades here and there as time goes on.

Here's some things to keep in mind if you decide not to hire an appraiser:1) The "City's" (by this I assume you mean the county assessor) "full market value" price likely does not reflect a property's current value as it is always based on data that is usually at least over half a year old and will not always reflect unique conditions, upgrades (or downgrades), etc of a home. 2) The seller's asking price for a home is definitely not an accurate basis for determining the home's value to you or anyone else (except maybe the seller himself). 3) Zillow may or may not give you an idea of a home's value.