The expenditures occur long before any income.  

This is really extreme for such a tight time frame... and cost us about $45,000 in capital expenditures.  

What my accountant did is, she declared most of these as Capital Expenditures, then she turned around and depreciated them in one year per the 2017 tax cuts and jobs act.  

Like many (most) businesses it requires an investment of capital; money expenditure for ongoing marketing; management of operating, marketing and professional personnel; keeping accounting records and filing tax returns; established sales practices; constant monitoring of goals, budgets, and productivity; establishment and implementation of operational systems; and providing customer service.  

Assuming you plan to hold these, you will have capital expenditures. 

Calculate the After Repair Value (ARV), or the expected market value following repairs, and estimate the expenditures associated with those improvements.

OP also gains from appreciation and eventually recaptures principal and capital expenditures.

Repairs vs. capital expenditures.- Find out how long the provider has been doing cost segregation studies and how many they have performed - Consider the resources available to the provider. 

Hemlane offers property management through our innovative model where we send 100% of the rent to you so that you can control and approve expenditures as well as have full transparency into the day-to-day so you always know what's going on and can make key decisions. 

You either spend the time categorizing your revenue and expenditures as you go (easier) or at the end of the year (harder IMO).