Expenses in attempting to purchase first rental but didn't close

[Tracey Hamilton]

My basic question is, are expenses incurred in the purchase of a first-rental property deductible as losses on taxes, if the property deal does not go through? Example, had accepted offer on a mulit-plex, in escrow, paid for inspection and appraisal, many miles to check out property, inspect property, be there for appraisal, etc. deal fell through after 3 months in escrow due to a lending issue. Any way to recoup these costs? I think it would be allowed if there were other rentals already owned, but not sure about it if it's a first rental purchase. Also, it was a 4-plex being purchased on an FHA owner-occupied loan, would that modify anything?

Potentially related question - are there on-the-face benefits to doing a lease-to-buy option with a potential home buyer for 5 years, then converting to installment sale VS just doing the installment sale from the start?  Or would it be a case-by-case basis where you'd want to run the numbers to see?  This would be on a personal residence, so option 1 would convert it to rental, then installment sale & capital gains.  I need to double check details, but I believe it's located in an Opportunity Zone, as well, so I'm thinking that might factor in. 

THank you!  Trying to wrap up planning for 2019 strategies and thinking through potential strategies for 2020.