I am very confused of what I have to put to get the deduction -_-;Do I go with "improvements" value $385777/27.5 years to get my depreciation of the building?

@Robert Taylor This looks like one of those cases where everyone is right, even though they differ.If you are building a long term enterprise, then you can certainly benefit from consistently doing certifiable quality improvements and exercising good will in your transactions.

Our contractor then started hitting the other owners asking if they wanted their properties improved the same way, some did, some just decided to sell to us and about 10% of the owners just kept things the same for years and then would contact us when they wanted to move one and found they couldn't sell even close to what the others were selling for after listing it and adjusting the price for the square foot difference.

@Mark LangdonConsider giving them a choice of items that will improve the value of the property.

I grew up in the city where they are located so I know they are in stable neighborhoods (not declining but not improving either).Prop #1: 10 units in 2 adjacent buildings.Price: $280000Down Payment $70,000 and Mortgage of $210,000Annual Rental Income: $47,500Annual Expenses (incl taxes, ins, mgmt fees): $25,400Net Operating Income: $22,100Annual Debt Service: $16,284Positive Cash Flow: $5,816 (22,100 - 16,284)CAP rate: 2.1% ($5,816 / $280,000)Prop #2: 10 units in 1 buildingPrice: $229,000Down Payment of $57,250 and Mortgage of $171,750Annual Rental Income: $56,100Annual Expenses (incl taxes, ins, mgmt fees): $29,903Net Operating Income: $26,257Annual Debt Service: $13,320Positive Cash Flow: $12,937 (26,257 - 13,320)CAP Rate: 5.6% ($12,937 / $229,000)I'll obviously do a thorough inspection done of each building to uncover any capital construction needs or deferred maintenance problems.Any thoughts?

I like regular renters who jobs and income improve with the economy rebounding and unemployment falling in the years to come.

Definently going to improve my score

Find ways to improve...willing to make changes/adjustments3.

As for painting, improvements, pet ownership and the like, you have the same rights as any other homeowner.

This is a choice, I vet them for being able to buy within the option period, I set them up with a mortgage broker to work with on improving credit, saving, etc, and I make sure they want to actually BUY the house.