There has to be an account in the middle for repairs, renovations, etc. and you want to know how that will be disbursed and if you need a workflow between you.If you decide to do it, just start small with an asset that is as close to can't lose as possible so you can fine-tune your collective process.

Not to mention, they also snipped all of the wiring in the basement of the home running all over the house, so there is also major electrical repairs needed. 

To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

It looks like you're not going to finance the repairs.

Research high-rental areas, plan for repairs, and consider simple upgrades.

View report*This link comes directly from our calculators, based on information input by the member who posted.Don't know the age of the property but due to what you stated the price point I am going to guess it is a bit older. 5% for repairs and cap ex maybe low in that case.

Reviewing their product page it does appear the $25/month is base with the marginal $1/unit pricing after that. https://latchel.com/emergency/So more economical as the portfolio grows, though very curious Your XP once repairs are triggered since most after hours calls would be “surge pricing” for any contractor they bring in. in 15 years I’ve only had a few of the stereotypical “after hours broken toilet” calls, but I know that’s highly variable by location and property class.

The aspect of buying and selling without the headache of repair, remodel or tenant issues is what I find the most appealing. 

With the mistakes that have already occurred, you are already costing yourself more than $500.00.Once the property is vacant and repaired, I would hire a local Property Manager to oversee it.

Lastly, don’t forget about the tax benefits, you can often deduct mortgage interest, repairs, and other expenses.If you need help navigating any part of the process, from financing future investments to managing your rental, feel free to reach out.