For unit 2, you place the property in service when you convert it to a rental. The basis for depreciation of the appliances is their cost, or the fair market value at the time of conversion, whichever is lower. So realistically, maybe half their original cost? You may have to do some research at used appliance stores. You are not allowed a rental deduction for the depreciation that occurred while the unit was personal use. Since it's not a new purchase it doesn't qualify for de minimis or section 179.
