I'm not an accountant, but i believe any capitol improvement you made would have to be depreciated over the life span of the product or asset. furnace, hot water heater - i believe would be over the typical life span of those products. windows, kitchen, bath - i believe would be over a 27.5 year span. minor repairs can be deducted in full that year. someone correct me if i am wrong, as i said, i am not an accountant.

If the townhouse is in a hot area, is it possible the property will be reassessed and the taxes will go up in the next three years? 

My partner is also a real estate agent who mainly specializes in the center city metro area of Philadelphia and the surrounding boroughs of Philly a.k.a hot markets.

Plus, you happen to be in a very hot area for rentals.

We have a 30 yr Conventional at 5.5% on a single bed condo unit that we rehabbed, rents at 1100 and have cash flowing 380/month (before capex-not sure how to calculate because HOA covers roof and hot water heater, we'd be on the hook for heat/ac unit).  

Would love to see it get hot. 

In December, I had a Hot Water Leak that did some severe damage and I NEVER heard a word about it, I had to see the initial Water Extraction Bill show up on my Online Statement and I had to email them to ask what happened!! 

Cherry picking the MLS in a hot market like mine is very tough, so I send out a lot of offers that don't get a response, but hey if it was easy ... 

If continuing at that rate, it would be down to 4.2% by the end of 2016 - and only breached that level in the hot '99/2000 market, which is the lowest unemployment watermark for almost all areas.

If continuing at that rate, it would be down to 4.2% by the end of 2016 - and only breached that level in the hot '99/2000 market, which is the lowest unemployment watermark for almost all areas.