We take pictures on a pre-inspection only of existing damage, which generally doesn't exist because we repair anything that happens between tenants.

I believe the better value currently is finding a home that needs cosmetic repairs and allowing the PM to handle those and get the place rented out as someone else stated.

I still tried to reason with her to see if we could repair this, but she hired a personal injury lawyer (who happens to be a cleaning client of her) to start emailing me demanding I give her $125,000 for her 1/2 of the business, or else they are going to file a lawsuit.

Any expenses you put in to renovation or repairs are not deductible, but must be capitalized after the property is in service. 

I would imagine this would be close to a balance sheet.I'm not sure what my CPA would want, but that looked pretty inclusive since I categorized my transactions into their respective categories, ie property management, and repairs.

Further, we need to account for a $10k “reserve” for what will be repairs / maintenance as the property ages.  

Focus on building a network of contractors for repairs, set clear boundaries for house hacking, and take advantage of tax benefits.

Also, they will NOT stop paying UNLESS you do not do the repairs in the time allotted.

I did this to build rapport I did not need to do this since my landlord in my lease is responsible for all repairs that are not caused directly by me or my guests.

Your income is Sales priceLess Purchase PriceLess Costs to sell propertyLess renovations/repairs/holding costs.You mentioned having partners.