@Theresa Harris Your suggestions would be efficient ways to manage the situation. 

Focus on improvements that attract quality tenants, justify higher rents, and survive use and abuse for the long haul.Our Rochester property management experts have identified the rental property upgrades that consistently pay off in Rochester's competitive market.Why Smart Upgrades Matter for Rochester Property ManagementRochester NY rental properties face unique challenges – from brutal winters that test materials to a competitive market where property management companies must help landlords stand out.

We expense the normal/small repairs and put the big repairs into an account called improvements and the CPA takes it from there.

You know the phrase "Don't over improve a property"...this is where your comps are critically important. 

Royalties are tied to energy production and commodity prices.

Only caveat would be make sure the PM doesn’t nickel and dime when it comes to costly repairs and tries to look for cost efficient repairs on your behalf.

Keep the rest for reserves and startup costs.Focus on building solid systems for bookkeeping, tax planning, and management to scale efficiently.

These can make a huge difference in how much of your rental income and even your W-2 or business income you can offset with property losses and deductions while house hacking your duplex.Good luck, and if you’d like to chat about how to set this up for maximum tax efficiency, we’d be happy to connect.This post does not create a CPA-client relationship.

And I dont put my name on it unless I put in the time and energy required to provide the most thorough and accurate estimate and scope possible, which includes an accounting for all potential problems and challenges not visable.

I would recommend keeping track of receipts paid for improvements and renovations.