Like what Joshua said, purchase price, closing cost, and agent fees are capitalized.

Also, they charge a 10% markup fee on repairs.

I like it and the numbers look decent.Pro Forma is 7.21% and CoC ROI is 10.04%.However one of the tenants is late for rent ($1,000 in late fees this year), a smoker and their unit is hard to even be in.   

After that they get a 7-day curable notice with a $45 posting fee.

This translates to ownership or a fee, but most lenders want to see ownership.

When a tenant is far past due on a balance (rent, late fees) do you first take it up with collections, or small claims court? 

I’d recommend steering away from condos due to high HOA fees, which can eat into returns.

While down payments and principal payments aren't deductible, inspection fees and other acquisition costs can be added to the property’s basis for depreciation.

We fee like a conservative approach will let us go through the growing pains of better understanding real estate investing without the worry of being over leveraged to add to the stress while we are both still employed full time in our careers and do not plan on quitting our jobs to go fully into real estate. 

I charge a really high fee and require the tenant to carry bite insurance.Inspections are done on a schedule and always recorded with pictures and/or video.