If I buy new appliances or do a rehabilitation, what is the difference between depreciating the personal property and just expensing the cost of the upgrades off my taxes?
Depreciating the personal property allows you to lower your capital gains tax over the next 5 years, and provides steady depreciation deductions more valuable than your standard straight-line method. On the other hand, expensing the personal property allows you to write off or lower your taxes only the year it was installed. Having a one year write-off expensing personal property could potentially cost you hundreds or thousands in the long run. You should ask your CPA about whether a quick expense (as in under Section 179) is a better strategy for you opposed to accelerated depreciation–it will depend on mostly on your investment strategy.
