Your expenses are per unit (one kitchen, one bath, one AC etc) your income is per size.

We paid $68K for the house, put $4K into adding a couple closets, a countertop, new stove and painting the kitchen. 

Full scope rehab included new kitchen, 2 new bathrooms, new flooring throughout, all new windows, new exterior paint, and significant mold remediation as well as several serious deferred maintenance items.

My other 12 properties are in Las Vegas, less than 20 years old, with stucco siding, sloped tile roofs, no grass, no snow, no frost, no state income taxes, very low property taxes, no fences, no tornadoes or hurricanes, etc etc...I MIGHT buy 1-2 water heaters per year, 2-3 appliances (since each house has 6) and an air conditioner every 4-5 years (they all have 2) I don’t spend a dollar on exterior painting, roofs, windows, or doors (except a garage door once).

The house required a rebuild of the kitchen, floor replacement, and update to the bathrooms.

Property seems to be in semi-good condition but we would like to perform some renovations on our unit (upgrade kitchen).

Short version is if your 45-day window expires between Apr 1 and July 15, the new deadline is July 15. https://www.irs.gov/pub/irs-drop/n-20-23.pdf

There is no kitchen or kitchenette to make it an official unit.

Hi Greg, thanks for the feed back, and yes you are right, now I'm  not a professional landlord, but I've had 2 other properties there one of which I still own one and I also didn't have any problems placing tenants, the principal of the high school there has been living in the one I currently own there for 2 years now, the work being done is pretty much a total remodel kitchen cabinets, bathrooms remodels,replace the sheetroock in one of the bedrooms re-texture the walls, get rid of a gas fireplace, new flooring, painting interior and exterior light fixtures and add a central heat and air and is a 1300 sf 3/2.The people who lived there were just not clean at all and they just didn't care for the property. 

Fyi the basement has its own separate entrance and i added a window for the bedroom to be legal.