Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney.

Taxable Income: Moving profits from your property improvements or lighting LLCs into the real estate LLC doesn’t change your overall taxable income.

The adjusted cost basis would be your purchase price, plus capital improvements, minus depreciation, like what @Josh St Laurent said.

Their split was $130k improvements and $220k land.

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If you can buy below market value, then put in modest improvements (paint, flooring, fixtures, maybe some minor updates on kitchens or baths), you can often increase rents enough to improve cash flow meaningfully.

Looking to avoid home inspectors that do minimum standards of practice and's will check every single detail.

It also improved refinance options down the line, making it easier to pull capital back out for the next deal.It’s a reminder that appraisals aren’t just another box to check for the bank.

This will be an important number because some of your loans will also require "reserves" and it's just good practice to have money saved for emergencies.Having said all of that, my expense ratio that I use on all of my residential properties is 18.5%.

Since you don’t plan to convert the property into a rental, options like depreciation or 1031 exchanges aren’t available.Step up your cost basis: Add in eligible improvements you’ve made over the years (renovations, additions, even some closing costs).