Then do no repairs and sell the property to investors paying off the property in 5 yr's.

The last thing you want is a brand that will take 2 weeks to get repaired if needed.We have Maytag units in our lake house and they have been rock steady for 7 years.

The property is a duplex with an ARV (after repair value) of $700,000, making it a strong deal.However, I want to ensure I’m not overlooking any potential red flags.

But we already get deductions for maintenance, repairs, and improvements.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

My research guided me to form an LLC to hold the properties during repair/rehab (I am buying properties that need major fixing) and move them to another LLC where I will be collecting rent. 

For as much as attorney's charge, they should be able to answer this question.The deposit can be used for cleaning, repairs, and unpaid charges.

It may be worth the investment if you decide to do out of state to eliminate any potential mishaps when it comes to timely repairs if needed. 

I at one point charged tenants the first $50 of repair costs.

This log should include:•The date of activity•The property worked on•Specific activities performedExamples of activities that typically count include approving tenants, setting lease terms, handling repairs, and other hands-on operational tasks directly related to managing the property.