The real item I’m hoping to address with my post is the condition of one of my units at the rental property.

We just bought a dishwasher for a rental property and we know that we cannot expense it this year. Our understanding is that this is consider a Capital Expenditure and if gets depreciated over a period of time. Ours q...

The other option that I know you are familiar with would be to just turn it into a medium term rental which isn’t as lucrative, but still outperforms traditional long term rentals.

Traditional Investment Mortgage

Many traditional mortgage guys aren’t big fans of this loan, as they see it as a danger to their residual business.

We recently ran into this on a deal we were underwriting and the tax increased caused the deal not to make sense (among some other items). 

Unless you or your spouse is a real estate professional, and assuming this is a traditional long-term rental, the activity will be passive and losses will generally be suspended or carried forward. 

@Kiran Vemula forgot to include, I use 5% CapEx and 5% maintenance but it really depends on the age of the house and what items your HOA includes

Remember that the properties you are looking to wholesale (distressed) shouldn't qualify for a traditional mortgage loan.

Closing costs can run anywhere from 2-3% of the pruchase price and include cost items such as, loan origination fees, appraisel and survey fees, title/homeowner insurance, escrow fees, attorney fees, etc...