The same principles applies in the sense, Schedule E's expenses have to be categorised to existing properties placed in service. 

But I would not categorise rent as discretionary.  

I was listening to podcast 085 and Mike briefly touched on it.I was categorising them as price range, assuming them as below.B - $70 - $100C - $40 - $70Basically my question should be "can I get property for above price range with maybe cosmetic repair for $30k?" 

Hi Steve,start up costs and cost of doing business are two different things.If you have a business already running then you look at your repairs and improvements and try to categorise what you can claim as a repair.

I was the one who mentioned it has many variables which Scott seems to have categorised into: 1) Planning Costs (engineering, survey, etc), 2) Prep Costs (land clearing, sediment control, etc) 3) Construction Costs (actual build costs)I think we are all on the same page.

I'm looking for some info on the area within the following boundaries:North: Pasadena Freeway (225)West: Scarborough LaneSouth: W Harris AveEast: S Shaver StHow would you categorise the area?

And not paying anything more than FMV a the time.Jay this is a phenomenal categorisation of your personal home buying over the years and the power of that tax exemption.You don't hear about it as much these days but the "serial home buyer" strategy of building wealth was pretty popular in the 90s to early 2000s (Possibly before that, but that is my frame of reference).  

You do an inspection just prior to their move out and give them a itemised list of all the wall damage and tell them the repairs and painting will come out of their deposit.Sorry to say but your categorising any tenant as a "great tenant" is irrelevant in regards to tenant damage and repair costs.Remember it's a business not a popularity contest.

@jace mattinsonI am relatively new, I would like know,Is there any preset criteria(approx)  to categorise the area to be A,B,C,D?