If you have stabilized the damage, you can present the insurance carriers with these details in hopes they see the property has improved form a vacant fire damaged building.

I'm wondering about using the rule in 26 US Code 190 to expense, instead of capitalize, costs to improve accessibility, whether it's ramps, widening doorways, etc.

Unit 1:3 bed 1 bath/ rent $1065  Unit 2&3: 2 bed 1 bath/ rent $940Insurance $1600, taxes $6000Current lease has OWNER paying for water - $2900 ( would have to suck it up until the lease is over ) Condition of the house doesn't appear to be too bad and in my opinion these units are under rented but of course wont pay for what COULD be, just saying that if these numbers work at all there is a chance of improving them.Obviously want to factor Vacancy, Capex, repairs and property management.

After you close on an improved property, change all exterior door locks and contact your insurance agent to get a new property covered.  

We pay off the HELOC loan when the improved property is complete and will appraise at market value. 

the court gotta improve the system. people live free for their whole life by doing this every 6-10 months. 

I'm saving up right now but am looking for undervalued properties that can be greatly improved with some repairs and TLC.

I am sure this happens in many markets and yes there is some speculation involved with whether or not an area will improve enough to make this worth while, but if you buy the property at a decent price, then you could potentially still be covered if the area never does in fact improve.Thanks for any input.

You will have to assign a portion of your purchase price as land value and a portion as improvements.

@Brandon Richards - looks like you are combining two products and you are talking about Homestyle as well- however there is no limit to the amount of work expect you cannot exceed 50% of the "after improved value".