Hold it for 1-3 years, fix it up, raise rents, and sell at a profit.

This equation is pretty simple, in theory, how much additional rent can you get by upgrading versus keeping it in its current condition, divided by how much will it cost to upgrade?  

Out of that $1,200, you could factor in loan buy down and tax benefits in addition to potential appreciation. 

Investment Info:Small multi-family (2-4 units) buy & hold investment.

With inflation pacing higher than expected and with the Fed obsessed with a silly and arbitrary 2% number for inflation, don't hold your breath on significant drops for a bit.

Do you feel the additional drivers of the Northern Lights in areas like Fairbanks would help increase winter occupancy better than places like Anchorage?

This is all before title, tax, conveyance fee's, water hold, etc.

Here's an article with additional FAQs on cost segregation studies that you may find helpful.

@Tracy Scott it's highly dependent on the deal, the type of property and the location.In addition to the items others have mentioned, here are some of the biggest potential start-up expenses that I study closely before buying a property:Foundation/structure--this is one of my few "deal breakers", I typically will not purchase a property with significant foundation or structural issues.

., there are additional parking needs.- This is an industrial area with no lack of available space that already has suitable buildings for a brewery.