Increase Your Cost Basis: Document and include the costs of significant improvements made to the property in your cost basis.

It depends on the neighborhood and maybe even what improvements that hypothetical home built in the 1970s got. 

@Paul Bogard going to assume you are buying this proeprty to live in while you "house hack".First, you should understand +95% of real estate agents ONLY know how to sell owner-occupied properties and are almost useless for investors:(Find an agent that has rental properties themself or can PROVE they've got successful repeat investor clients.Secondly, you can greatly improve your cashflow by renting out your other bedrooms.

Franklinton is undergoing rapid transformation, with developments like The Gravity Projects, new breweries, and an expanding arts district driving change.Safety and Future Outlook:Increased Investments: New developments bring better lighting, public spaces, and infrastructure, naturally improving safety.Community Growth: More residents and businesses create activity, discouraging crime and boosting the neighborhood's vibrancy.Police and Outreach: Enhanced patrols and local organizations address crime and substance issues.While challenges remain, ongoing investments and gentrification make Franklinton safer and more attractive.

To reinforce what I said about making sure the credit tenant is proven and sustainable all you have to do is look back on the past 15 years or so:2009-2012: frozen yogurt 2012-2014: “new and improved burger” spots2014-2015: spin class2015-2016: megaformer and Pilates2016-2017: poke bowl2021-2022: "new and improved cookie" spots2021-2023: indoor golf2024: pickleball(5) If you are in a situation where seeking an F&B operator, be aware at this time these operators are seeking very high T&I allowances which may not be a worthwhile investment for you to make.

Hopefully we get the latest water bill version through the state assembly this time to improve this.   

Ideally doing some value-add improvements during that 1yr. 

For tax purposes, remodeling costs like the kitchen and flooring are considered capital improvements and depreciated over 27.5 years.

However, profits would be bigger if there were no HOA fee and there would be more opportunity to make improvements on the property.

I got a lien on the house they were flipping, all looked good on paper, then I found out they were using my $60K to improve their personal house!