If end house buyer improves house tax base improves.5) Neighbors- Don't have a blighted bank owned house sitting empty for months or years in the neighborhood.6) Wholesaler-Makes some money on something they would have thrown in the trash.7) Grant- Makes money in several different ways including buying low and selling higher.

What steps have you taken to improve your record?

The property has had some work done on the interiors, though strangely, it’s mostly been larger “improvement” jobs while simple maintenance is lacking… So far we have re-roofed the building, gutted the overgrown landscaping and fenced both back yards, put up security lighting, fixed some plumbing and electrical issues and collected rent.

Is $1000 per year of that annual cash flow enough to set aside for capital improvements for a house of this age in your opinion?

Anything that allows heat to escape will improve comfort.

Only improvements.

I would rather make a mistake and learn from it and improve than not do anything because of fear of making mistake.If you really don't know of something they ask you about, just tell them that you will have to discuss that with your partner and you will get back to them on that.

The houses aren't in the best neighborhood and the seller makes only the improvements needed to pass inspection.

Within one year from the time an asset is acquired the value is "book value" the cost of acquisition plus the costs of improvements.

Example: purchase 3/1.5 SFR for $37K, add $8K in repairs/improvements (~$45K basis), and rent for $850-$900.