Yeah, the substantially improved part is a pain in the ass. We wanted to buy an empty warehouse that was in decent shape in North Charlotte (right near NoDa Brewing if you are a beer guy). But we wouldn't have needed to spend that much on it. And the real tax benefit is buying it with $ from another property sale and we were coming in cold, with money from a sale too long ago to qualify. On top of all that, the price ended up being way too high because of the people with extra money and a recent sale driving it up. Just be careful chasing the tax benefits.