Following is one sentence from IRS 587: "However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement."

Do NOT ignore this issue, but also be reasonable about it.Bring it up to the tenant and just ask that they don't do it again.Check your lease and if it requires the property be returned in same or better condition, point this out to the tenant that they may have to restore the bathroom or be charged the cost of doing so when they move out.You could also "trade" the lease violation for a lease extension.

Right now my plan looks something like:- Live in the property for the VA-required period- Refinance into a conventional loan afterward to restore entitlement- Use VA again for the next purchase- Slowly build a small portfolio while staying fully compliant with VA rules I know a lot of investors have used this VA → conventional → VA cycle to scale, and I’m hoping to hear:- How did this strategy work for you?

We are specifically looking for:Insurance Navigation: Any tips for working with State Farm on a large-scale fire claim or specific questions they should be asking their adjuster.Professional Recommendations: Advice on whether to hire a Public Adjuster to ensure they receive a fair settlement for the extensive damage.Restoration Experts: Recommendations for local contractors who specialize in fire restoration and structural integrity.

We have started using the semi-local Habitat Restores for cabinets.

But ask yourself: is the property fundamentally sound once restored?

But this is a great way for smaller operators that don't yet have a team with 24/7 coverage to restore some sanity to their lives without missing anything truly important.Super helpful.

Even under $2,500, items are often considered improvements if they upgrade or restore part of the building, which means the IRS technically expects you to capitalize and depreciate them.

It is not grime, built up dirt, excessive wall damage, or abused LVP.If the unit is not returned in substantially the same level of cleanliness as move in, you can charge to restore it to that condition.

Instead of one big $500k building, the IRS lets you peel off the "personal property" and "land improvements"—things like:5-Year Property: Carpeting, appliances, specialty lighting, and cabinetry.15-Year Property: Driveways, fences, and landscaping.The "Magic" of Bonus Depreciation in 2026While the old 100% bonus depreciation from the 2017 tax act began phasing out, the One, Big, Beautiful Bill (OBBB) of 2025/2026 has restored the 100% bonus depreciation for qualifying property placed in service recently.This means if you buy a $1M apartment complex and the study finds $250k in 5-year and 15-year assets, you can often write off that entire $250k in Year 1.