(Read only the bold if you're short on time)I'm getting ready to buy my first rental property (it's been a long time coming).

Kidding aside, there are some red flags here, but not enough info to advise upon.Mike

Some years it might be in the red but I have the means to put money in if it does (though not ideal).Not everybody can do this.

red states in general, FL, TX still have great deals and offer good benefits for landlords.

assuming work completes after closing.In the event of an audit, is it a red flag if we claim an "improvement" after the closing date occurred?   

I've gotten to the point where previous home ownership is a big red flag to me.

This is also a red tagged code violation in almost all cities. 

And is walking into a turnkey ready to rock building, the seller (whom I am presuming is now broke, but that may not be the case) even left the tables and chairs behind, all ready to have plates full of unethical inorganic genetically modified red meat dipped in butter placed on them. 

If a lender is not adhering to this common safeguards then that would be my first red signal .

This quote below is from your link with bolded emphasis by me:So, even if you materially participate in running your rental properties, you still can’t deduct those losses against other nonpassive income.