They replaced the floors, redid the kitchens and bathrooms, and brought in new appliances so it seems to me that there isn't much left to do with this property.  

I can replace a roof and a good bit of drywall for $10K, plus they are both brick houses so siding isn't a worry. 

@Ronald Daley Househacking sounds like a solid first move! 

I do not share the same sentiment as "Thomas" on this thread in that it sounds like he has had a very negative experience with Section 8 tenants or he knows someone that has. 

It sounds to me like you are asking about the classification for purposes of getting a city business license?  

@David Sillaman Ok so it sounds like cash investments will not give rise to the appreciation/depreciation tax benefits for holding 10+ years and it must be capital gains invested into a fund to get that treatment.If cash and capital gains are mixed into a fund I believe that dilutes the tax benefits.

Now doesn’t sound like you’re a multimillionaire, so if you don’t plan to refinance I would put it in a llc.

My A/C guy tells me that the electronic board needs to be replaced at a cost of $1,000.

@Richard Snyder I have never heard of them, but sounds like a hedge fund back insurance carrier looking to do everything through automation. 

Does that sound right?