I plan to throw most everything out and replace flooring – right now there's old stained nasty carpet in the rooms and vinyl linoleum in the kitchen and bathroom.

Interior of the property has new carpets, painted walls new windows, etc.

This included changing cleaners, changing plumbers, changing HVAC companies, tinting windows so they don't look as dirty and need windows cleaners, changing internet providers, changing from satellite TV to DirecTV stream, remove/change items requiring high maintenance like skeeball along with a dozen other things. 

The house was a rental, broken window shades, not painted, old carpets... 

Lot of times we replace carpet with LVT, new paint and new lightning makes A HUGE difference.

Bought the property in July with one unit needing a new tenant- The open unit was dirty after cleaners had been through ($350).

A PM needs to make money , the cleaners need to make money and the contractors that did the work need to make money . 

Our clients making mid-six figures via W2 get the most significant benefits by launching an STR by the end of the year and offsetting taxes.The most common hurdle is the material participation test, often achieved by committing over 100 hours of direct management and tracking that time to ensure it is more than the hours spent by any other individual, including cleaners and property managers.

Here’s the 30,000-ft view:What cost seg actually doesA study breaks the property into buckets — 5-, 7-, 15-year stuff (carpet, cabinets, certain exterior, land improvements) vs the 27.5-year building.

The IRS specifically said that inclusion of carpets and appliances in a 1031 exchange is case by case.