First I try to do as many preventative upgrades as possible/practical during the acquisition.We have a lot of really old rowhomes in Philly.The capex items can be costly but not as much as your estimates, for example:New flat roof runs 2-5k depending on size.

The house is in a great area but it is missing some key items on the interior and the lay out itself seems to be what prevented the house from selling.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

. | Courtesy of Key Source PropertiesThe Planning Commission didn’t favor the most drastic option — prohibiting non-owner-occupied short-term rentals in residential areas — but the commission did recommend that Louisville Metro Council approve several other changes to its short-term rental ordinance, commonly referred to as the Airbnb ordinance.The suggested changes include:Increase the annual registration fee for short-term rentals to $100 from $25.Require hosts to post a copy of their city-issued registration near the entrance of the property so that it is visible from the exterior.Require the host to provide their name, telephone number and emergency contact information to adjacent property owners.Have a licensed fire prevention inspector or a home inspector inspect non-owner-occupied short-term rentals to determine any safety issues.Require non-owner-occupied short-term rental hosts to register their rental within 60 days of receiving a conditional use permit, or the permit will be null and void.Permit the city planning director to deny short-term rental registration to any host who has had his or her registration revoked within one year of application for the new registration.

Including rules applying additional charges per animal prevents tenants from turning your property into a zoo.

Non locking handles - Using a deadbolt with a non locking handle prevents tenant lockouts as well as cuts your lock change time & cost in half at the next turnover.

This is the main thing preventing me from just leaving it in their names and selling it that way since I don't think they'd be able to report the recaptured depreciation as I was the one who reported the depreciation on my returns.Any advice appreciated.

@Chris Mason,Id love to hear how the mangled schedule E prevented getting a new mortgage!

Outside of the work you already paid for not being completed, is anything else preventing you from firing this contractor?

Its always easier to prevent a problem than solve one .