Hi all,Are larger 10+ unit multifamilies grandfathered from major code improvements until time of renovation.

I realize this may sound like a bad deal, but I purchased the property for $55k (conventional loan, 20% down) and it needs about $20k of improvements to get 2 of the 3 doors ready for rent.  

I'm aware of some crime problems there but overall it seems that the area is improving.

Here's how the numbers look for depreciation.Purchase price: $120,000Land Value: $20,000 (Non-depreciable land)Improvement Value: $100,000 (Depreciable cost basis)Depreciation: $3,636.63/year, $36,363.63/10 year hold period (1/27.5=3.636% Depreciation per year)Tax Benefit: $1,272.72/year, $12,727.27/ 10 year hold period (Depreciation times marginal tax rate - $3,6363.63 x 35% = $1,272.72)Recapture: $9,090.90 upon sale of the property after 10 years.

However, he's done a good job of improving the property, the tenants, and the area.  

We spent a total of $287,000 for the entire construction project, including all loan costs and site improvements, and $50,000 for the land, so about $340k all in.

Figure out either an internet business(either dropshipping, ebaying, affiliate marketing, content creation(writing, reviews, videos, etc)(dude, start a blog now, put content on it, you put your story here, you can put it on your blog and eventually it will rank, even more as you progress your life improvement strategies))    ------    or start a super low overhead service business to start and run(think mobile/stationary car wash&detailing, cleaning service, maybe high demand time uber driving etc), or one possibly related somehow to real estate (if that is your interest)- like Landscaping(not maintenance-due to high equipment costs).

It has PMI on the loan right now but once I finish improvements I can get it removed with a appraisal.

That area will have good value gains in the long run because it is slowly improving.  

The house needs some structural improvements but I'm not worried about that.